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 of $250,000)made