On January 1 of the current year, Danielle Corporation has accumulated E&P of $10,000. Current...
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On January 1 of the current year, Danielle Corporation has accumulated E&P of $10,000. Current E&P for the year amounts to $30,000, earned evenly throughout the year. Jillian and Zhen are sole equal shareholders of Danielle Corporation from January 1 to July 31. On August 1, Jillian sells all stock to Mathew. Danielle Corporation makes two distributions to shareholders during the year: #1 on July 1 to Jillian and Zhen, $20,000 each ($40,000 total), and #2 on December 1 to Zhen and Mathew $20,000 each ($40,000 total). Determine the amounts of (1) Jillians dividend income (2) total distribution to Zhen and (3) return of capital to Mathew. (20 Points)
$20,000, $40,000, and $20,000
$7,500, $20,000, and $12,500
$12,500, $40,000, and $12,500
$20,000, $20,000, and $7,500
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