Adam owns 100% of Banana Company and has a basis of $60,000 in its stock.The company has earnings and profits of $54,000 and distributes a cash dividend to Adam of $72,000.Adam has a:
A) Nontaxable distribution of $18,000.
B) Capital gain of $12,000.
C) Dividend of $72,000.
D) Nontaxable distribution of $6,000.
Correct Answer:
Verified
Q115: A C corporation has a fiscal year-end
Q116: Alabaster Company is a Subchapter S corporation.It
Q117: TTT Corporation has a fiscal year-end that
Q118: The corporate AMT exemption amount is:
A)$40,000.
B)$150,000.
C)$310,000.
D)An amount
Q119: Ramona is a 50% shareholder in a
Q121: Quince Company has book income of $120,000
Q122: A corporation can choose to voluntarily revoke
Q123: Black Company is a Subchapter S corporation.It
Q124: There are four characteristics that a C
Q125: Certain items of income or expense are
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents