Payment Corporation has accumulated E&P of $19,000 and current E&P of $28,000. During the year, the corporation makes the following distributions to its sole shareholder: The sole shareholder's basis in her stock is $45,000. What are the tax consequences of the June 1 distribution?

Question

Payment Corporation has accumulated E&P of $19,000 and current E&P of $28,000. During the year, the corporation makes the following distributions to its sole shareholder:  The sole shareholder's basis in her stock is $45,000. What are the tax consequences of the June 1 distribution?

Quizplus · Accepted Answer

The Answer of Payment Corporation has accumulated E&P of $19,000 and current E&P of $28,000. During the year, the corporation makes the following distributions to its sole shareholder:  The sole shareholder's basis in her stock is $45,000. What are the tax consequences of the June 1 distribution?

Payment Corporation Has Accumulated E&P of $19,000 and Current E&P