Lone Star Company is a calendar-year corporation, and this year Lone Star reported $125,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E&P was $15,000. At the beginning of the year, Lone Star's sole shareholder was Matt. Lone Star declared $37,500 in cash distributions on each of the following dates: March 31, June 30, September 30, and December 31. Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. a. How much of the $150,000 in total distributions will be treated as dividends?
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Lone Star Company is a calendar-year corporation, and this year Lone Star reported $125,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E&P was $15,000. At the beginning of the year, Lone Star's sole shareholder was Matt. Lone Star declared $37,500 in cash distributions on each of the following dates: March 31, June 30, September 30, and December 31.
Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.
a. How much of the $150,000 in total distributions will be treated as dividends?
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- Lone Star Company is a calendar-year corporation, and this year Lone Star reported $100,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E&P was $12,000. At the beginning of the year, Lone Star's sole shareholder was Matt. Lone Star declared $30,000 in cash distributions on each of the following dates: March 31, June 30, September 30, and December 31. Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. a. How much of the $120,000 in total distributions will be treated as dividends? b. Suppose that Matt sold half of the shares to Chris on June 1 for $40,000. How much dividend income will Matt recognize this year? Answer is complete but not entirely correct. Dividend recognized $ 35,714 X c. If Matt's basis in the Lone Star shares was $7,000 at the beginning of the year, how much capital gain will he recognize on the sale and distributions from Lone Star? Capital gain…Lone Star Company is a calendar-year corporation, and this year Lone Star reported $122,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star’s accumulated E&P was $14,640. At the beginning of the year, Lone Star’s sole shareholder was Matt McCon. Lone Star declared $36,600 in cash distributions on each of the following dates: March 31, June 30, September 30, and December 31. (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) b. Suppose that Matt sold half of his shares to Chris Coop on June 1st for $51,000. How much dividend income will Matt recognize this year? Dividend recognized: c. If Matt’s basis in his Lone Star shares was $8,100 at the beginning of the year, how much capital gain will he recognize on the sale and distributions from Lone Star? Capital gain recognized on the sale and distribution:Lone Star Company is a calendar-year corporation, and this year Lone Star reported $210,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E&P was $25,200. At the beginning of the year, Lone Star's sole shareholder was Matt. Lone Star declared $63,000 in cash distributions on each of the following dates: March 31, June 30, September 30, and December 31. b. Suppose that Matt sold half of the shares to Chris on June 1st for $51,000. How much dividend income will Matt recognize this year? c. If Matt's basis in the Lone Star shares was $7,440 at the beginning of the year, how much capital gain will he recognize on the sale and distributions from Lone Star?
- Lone Star Company is a calendar-year corporation, and this year Lone Star reported $142,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E&P was $17,040. Lone Star declared $42,600 in cash distributions on each of the following dates: April 1, July 1, October 1, and December 31. Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. b. Suppose that Matt owned all Lone Star's shares at the beginning of the year and sold half of the shares to Chris on June 1st June 1st for $56,800. How much dividend income will Matt recognize this year? Hint: The correct answer is from the book = 100,820Tax Accounting Lone star company is a calendar-year corporation, and this year lone star reported $125,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star accumulated E&P was $15,000. At the beginning of the year, lone stars sole shareholder was Matt McCon. Lone star declared $37,500 in cash distributions on each of the following dates: March 31, June 30, September 30, and December 31. Suppose Matt sold half his shares to Chris Coop on June 1st for $52,500. How much dividend income will matt recognize this year? If matts basis in his lone star shares was $8250 at the beginning of the year, how much capital gain will he recognize on the sale and distributions from Lone Star?applies to the questions displayed below.] Lone Star Company is a calendar-year corporation, and this year Lone Star reported $104,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E&P was $12,480. Lone Star declared $31,200 in cash distributions on each of the following dates: April 1, July 1, October 1, and December 31. Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. b. Suppose that Matt owned all Lone Star's shares at the beginning of the year and sold half of the shares to Chris on June 1st for $41,600. How much dividend income will Matt recognize this year? Answer is complete but not entirely correct. Dividend recognized $ 166,400 X
- Required information [The following information applies to the questions displayed below.) Lone Star Company is a calendar-year corporation, and this year Lone Star reported $115,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E&P was $13,800. At the beginning of the year, Lone Star's sole shareholder was Matt McCon. Lone Star declared $34,500 in cash distributions on each of the following dates: March 31, June 30, September 30, and December 31. (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) b. Suppose that Matt sold half of his shares to Chris Coop on June 1st for $47,500. How much dividend income will Matt recognize this year? Dividend recognizedOn January 1, year 5, Olinto Corp., an accrual basis, calendar year C corporation, had $35,000 in accumulated earnings and profits. For year 5, Olinto had current earnings and profits of $15,000 and made two $40,000 cash distributions to its shareholders, one in April and one in September of year 5. What amount of the year 5 distributions is classified as dividend income to Olinto’s shareholders? a.$15,000 b.$35,000 c.$50,000 d.$80,000Required information [The following information applies to the questions displayed below.] Lone Star Company is a calendar-year corporation, and this year Lone Star reported $148,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E&P was $17,760. Lone Star declared $44,400 in cash distributions on each of the following dates: April 1, July 1, October 1, and December 31. Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. c. If Matt's basis in the Lone Star shares was $10,360 at the beginning of the year, how much capital gain will he recognize on the sale and distributions from Lone Star? Capital gain recognized on the sale and distribution 32
- Required information [The following information applies to the questions displayed below.] Lone Star Company is a calendar-year corporation, and this year Lone Star reported $148,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E&P was $17,760. Lone Star declared $44,400 in cash distributions on each of the following dates: April 1, July 1, October 1, and December 31. Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. b. Suppose that Matt owned all Lone Star's shares at the beginning of the year and sold half of the shares to Chris on June 1st for $59,200. How much dividend income will Matt recognize this year? Dividend recognizedOn January 1 of the current year, ImagineNation Corporation had accumulated E & P of $50,000. It had $150,000 of current E & P, earned evenly throughout the year. ImagineNation makes one cash distribution of $100,000 on July 1 and a property distribution of $150,000 on December 1. The sole shareholder, Curtis, has a basis in the stock of $25,000. a) Determine the amount of each distribution that is from current E&P, accumulated E&P, Return of capital, and capital gain by completing the following table: Date of Distribution July 1 December 1 Totals Return of Capital Accumulated E&P Capital Gain From Current From E&P Total Distribution $100,000 $150,000 $250,000 b) Assume that the basis of the property distributed is $160,000. Determine the amount of gain/loss realized and recognized by ImagineNation Corporation. Gain/Loss realized_ Gain/Loss recognized_Show your work On January 1 of the current year, Rhondell Corporation has accumulated E & P of $174,000. Current E & P for the year is $522,000, earned evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January 1 to April 30. On May 1, Elizabeth sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $278,400 ($139,200 to Elizabeth and $139,200 to Jonathan) on April 30 and a total of $487,200 ($243,600 to Jonathan and $243,600 Marshall) on December 31. Determine the allocation of the distributions by completing the table below. Assume that the shareholders have sufficient basis in their stock for any amount that is treated as return of capital.