McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

تمرين 23

Beaver Corporation reported taxable income of $500,000 from operations for 2011.The company paid federal income taxes of $170,000 on this taxable income.During the year, the company made a distribution of land to its sole shareholder, Eugenia VanDam.The land's fair market value was $20,000 and its tax and E P basis to Beaver was $50,000.Eugenia assumed a mortgage on the land of $25,000.Any gain from the distribution will be taxed at 34 percent.Beaver Corporation had accumulated E P of $1,500,000.a.Compute Beaver's total taxable income and federal income tax paid as a result of the distribution.b.Compute Beaver's current E P for 2011.c.Compute Beaver's accumulated E P at the beginning of 2012.d.What amount of dividend income does Eugenia report as a result of the distribution?
e.What is Eugenia's income tax basis in the land received from Beaver?