At the beginning of the year, Suqing Corporation (a calendar year taxpayer) has E&P of...
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Accounting
At the beginning of the year, Suqing Corporation (a calendar year taxpayer) has E&P of $15,000. The corporation generates no additional E&P during the year. On July 1, the corporation distributes $20,000 to its sole shareholder, Saiya, whose stock basis is $4,000. Determine Saiyas (1) dividend income and (2) taxable gain recognized. (20 Points)
$20,000 and $0
$15,000 and $4,000
$15,000 and $1,000
$20,000 and $4,000
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