29. On January 1,206, an S corporation has accumulated E\&P of $55,000 from its years...
70.2K
Verified Solution
Link Copied!
Question
Accounting
29. On January 1,206, an S corporation has accumulated E\&P of $55,000 from its years as a C corporation and has a positive AAA balance of $15,000. The corporation's sole shareholder, Betty, has a basis in her S corporation stock of $30,000. During 206, the corporation reports ordinary income of $10,000 and a $20,000 long-term capital gain. During 206, the corporation distributes $65,000 to Betty. The amount of the distribution that represents a taxable dividend is: a. $0. b. $20,000. c. $50,000. d. $55,000. 30. On January 1, 20X6, an S corporation has accumulated E\&P of $55,000 from its years as a C corporation and has a positive AAA balance of $15,000. The corporation's sole shareholder, Betty, has a basis in her S corporation stock of $30,000. During 206, the corporation reports ordinary income of $10,000 and a $20,000 long-term capital gain. During 206, the corporation distributes $65,000 to Betty. The balance in the corporation's accumulated E\&P at the end of 206 is: a. $0. b. $5,000. c. $35,000. d. $55,000
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
