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Determine the Amount of Taxable Dividend,return of Capital,and Capital Gain

Question 126

Essay

Determine the amount of taxable dividend,return of capital,and capital gain in each of the following independent cases.
a.Corporate earnings and profits of $100,000;stockholder basis in stock of $60,000;distribution of $20,000.
b.Corporate earnings and profits of $25,000;stockholder basis in stock of $40,000;distribution of $70,000.
c.Corporate earnings and profits of $300,000;stockholder basis in stock of $450,000;distribution of $350,000.

Correct Answer:

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a.Dividend = $20,000;return of capital =...

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