Dried Fruit Corp. has had a valid S Corp election in effect at all times...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Dried Fruit Corp. has had a valid S Corp election in effect at all times since its incorporation. The Dried Fruit Corp. stock is owned one-third by Raisin and two-thirds by Prune. All shareholders are US resident citizen individuals. At the beginning of the current year, Raisin's basis in his shares was $90,000 and Prune's basis in her shares was $30,000. During the current year, Dried Fruit Corp. earned $540,000 of net income from operations. Raisin's share was $180,000; Prune's share was $360,000. On July 1st, Dried Fruit Corp. distributed $240,000 to Raisin and $480,000 to Prune. How much gain does Raisin recognize as a result of this transaction? O $30,000 O $60,000 O $90,000 O $0
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!
