Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. q.8 dried fruit corp. has had a valid s corp e

Q.8 Dried Fruit Corp. has had a valid S Corp election...

90.2K

Verified Solution

Question

Accounting

Q.8
image
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 $54,000 and Prune's basis in her shares was $18,000. During the current year, Dried Fruit Corp. earned $324,000 of net income from operations. Raisin's share was $108,000; Prune's share was $216,000. On July 1st, Dried Fruit Corp. distributed $144,000 to Raisin and $288,000 to Prune. How much gain does Prune recognize as a result of this transaction? $0 $36,000 $18,000 $54,000

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

What factors influence the volume of vehicles turning right on a red indication and why...

Basic Math
Q

4 Sketch a double stranded region of bacterial DNA and the mRNA transcribed from the...

Biology
Q

Which component belongs to viruses, not cells?genetic materialcytoplasmribosomenudeuscapsid

Biology
Q

"Trees grow in a nursery are preferable for transplanting to trees grown in the forest....

Biology
Q

The circumference is 2.6 mm.Area in in decimal form: ____A ? 8.16 cmA ? 5.31...

Basic Math
Q

Find both the x intercept and the y intercept of the line given by this...

Statistics
Q

Net sales revenue, net income, and common stockholders' equily for Eyesight Mission Corporation, a manufacturer...

Accounting
Q

Baldini's Restaurant purchased a new building with the surrounding land. The price paid was $1,200,000,...

Accounting
Q

Last year Robert transferred a life insurance policy worth $500,000 to an irrevocable trust with...

Accounting
Q

A company purchased a computer system on January 7,2007, for $1,600,000. Prepare the journal entries...

Accounting
Q

Acme, Inc. stocks a number of different items of inventory. With respect to one item,...

Accounting
Q

Radical Edge Company has forecast a 20% sales growth for the next year. Current financials...

Finance