Problem 5-24 (Algorithmic) At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of $320,000. Blue's current E & Pis $192,000, and at the end of the year, it distributes $640,000 ($320,000 each) to its equal shareholders, Pooja and Jon. Pooja's stock basis is $44,800; Jon's stock basis is $179,200. How is the distribution treated for tax purposes? If an amount is zero, enter "0". Pooja has the following: Dividend income: Capital gain: Stock basis after distribution: Jon has the following: Dividend income: S Capital gain: s Stock basis after distribution: s

Problem 5-24 (Algorithmic) At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of $320,000. Blue's current E & Pis $192,000, and at the end of the year, it distributes $640,000 ($320,000 each) to its equal shareholders, Pooja and Jon. Pooja's stock basis is $44,800; Jon's stock basis is $179,200. How is the distribution treated for tax purposes? If an amount is zero, enter "0". Pooja has the following: Dividend income: Capital gain: Stock basis after distribution: Jon has the following: Dividend income: S Capital gain: s Stock basis after distribution: s

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter19: Corporations: Distributions Not In Complete Liquidation

Section: Chapter Questions

Problem 32P

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