Green Corporation is a calendar-year taxpayer.All of the stock is owned by Evan.His basis for the stock is $35,000.On March 1 (of a non-leap year),Green Corporation distributes $120,000 to Evan.Determine the tax consequences of the cash distribution to Evan in each of the following independent situations:
$\begin{array}{ccc}&\text { Current E\&P } & \text { Accumulated E\&F }\
\text { a) } & \$ 30,000 & \$ 100,000 \
\text { b) } & 50,000 & (50,000) \
\text { c) } & (73,000) & 40,000 \
\text { d) } & (20,000) & (50,000)
\end{array}$

Question

Green Corporation is a calendar-year taxpayer.All of the stock is owned by Evan.His basis for the stock is $35,000.On March 1 (of a non-leap year),Green Corporation distributes $120,000 to Evan.Determine the tax consequences of the cash distribution to Evan in each of the following independent situations:
 $\begin{array}{ccc}&\text { Current E\&P } & \text { Accumulated E\&F }\
\text { a) } & \$ 30,000 & \$ 100,000 \
\text { b) } & 50,000 & (50,000) \
\text { c) } & (73,000) & 40,000 \
\text { d) } & (20,000) & (50,000)
\end{array}$

Quizplus · Accepted Answer

The Answer of Green Corporation is a calendar-year taxpayer.All of the stock is owned by Evan.His basis for the stock is $35,000.On March 1 (of a non-leap year),Green Corporation distributes $120,000 to Evan.Determine the tax consequences of the cash distribution to Evan in each of the following independent situations:
 $\begin{array}{ccc}&\text { Current E\&P } & \text { Accumulated E\&F }\
\text { a) } & \$ 30,000 & \$ 100,000 \
\text { b) } & 50,000 & (50,000) \
\text { c) } & (73,000) & 40,000 \
\text { d) } & (20,000) & (50,000)
\end{array}$

Green Corporation Is a Calendar-Year Taxpayer