Marilyn owns 100% of the stock of Lilac, Inc., with an adjusted basis of $45,000. She receives a cash distribution of
$160,000 from Lilac when its earnings and profits are $90,000.
a. What is Marilyn's dividend income?
b. What is Marilyn's recognized gain or loss?
c. What is Marilyn's adjusted basis for her stock after the distribution?

Question

Quizplus · Accepted Answer

The Answer of Marilyn owns 100% of the stock of Lilac, Inc., with an adjusted basis of $45,000. She receives a cash distribution of
$160,000 from Lilac when its earnings and profits are $90,000.
a. What is Marilyn's dividend income?
b. What is Marilyn's recognized gain or loss?
c. What is Marilyn's adjusted basis for her stock after the distribution?

Marilyn Owns 100% of the Stock of Lilac, Inc