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:
A) The shareholders have dividend income of $100,000.
B) The shareholders have dividend income of $130,000.
C) Verdigris has a gain of $15,000 and a loss of $15,000, both of which it must recognize.
D) Verdigris has no recognized gain or loss.
E) None of the above.

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:
A) The shareholders have dividend income of $100,000. 
B) The shareholders have dividend income of $130,000. 
C) Verdigris has a gain of $15,000 and a loss of $15,000, both of which it must recognize. 
D) Verdigris has no recognized gain or loss. 
E) None of the above.

Quizplus · Accepted Answer

The Answer of 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:
A) The shareholders have dividend income of $100,000. 
B) The shareholders have dividend income of $130,000. 
C) Verdigris has a gain of $15,000 and a loss of $15,000, both of which it must recognize. 
D) Verdigris has no recognized gain or loss. 
E) None of the above.

In the Current Year, Verdigris Corporation (With E & P