In the current year,Verdigris Corporation (with E & P of $250,000)made the following property distributions to its shareholders (all corporations):

Verdigris Corporation is not a member of a controlled group.As a result of the distribution:

Question

In the current year,Verdigris Corporation (with E & P of $250,000)made the following property distributions to its shareholders (all corporations):

Verdigris Corporation is not a member of a controlled group.As a result of the distribution:

Quizplus · Accepted Answer

The shareholders have dividend income of $115,000 ($60,000 + $55,000)before considering § 243.Verdigris Corporation recognizes a gain of $15,000 ($55,000 - $40,000)from the distribution of the inventory but no loss can be recognized from the distribution of Black stock.

In the Current Year,Verdigris Corporation (With E & P of $250,000)made