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

Warbler Corporation is not a member of a controlled group.As a result of the distribution:
A)The shareholders have dividend income of $200,000.
B)The shareholders have dividend income of $260,000.
C)Warbler has a recognized gain of $30,000 and a recognized loss of $30,000.
D)Warbler has no recognized gain or loss.
E)None of the above.

Question

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

Warbler Corporation is not a member of a controlled group.As a result of the distribution:
A)The shareholders have dividend income of $200,000. 
B)The shareholders have dividend income of $260,000. 
C)Warbler has a recognized gain of $30,000 and a recognized loss of $30,000. 
D)Warbler has no recognized gain or loss. 
E)None of the above.

Quizplus · Accepted Answer

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

Warbler Corporation is not a member of a controlled group.As a result of the distribution:
A)The shareholders have dividend income of $200,000. 
B)The shareholders have dividend income of $260,000. 
C)Warbler has a recognized gain of $30,000 and a recognized loss of $30,000. 
D)Warbler has no recognized gain or loss. 
E)None of the above.

In the Current Year,Warbler Corporation (E & P of $250,000)