Each of the three shareholders holds 300 shares in the company. Under the $318 stock attribution rules, how many shares of Beltway stock is George deemed to own ? A. 300
Full Answer
What happened to Henry's stock in general inertia?
The distribution was in exchange for 250 shares of Henry's stock in the company. After the partial liquidation, Henry continued to own 50% of the remaining stock in General Inertia.
What can a shareholder elect to treat a distribution as?
D) The shareholder can elect to treat the distribution as either a dividend to the extent of the corporation's earnings and profits or a return of capital, followed by gain from sale of stock. Which of the following statements best describes current earnings and profits?
What is a distribution from XPO Corporation?
The distribution is a dividend to the extent of the corporation's earnings and profits, then a return of capital, and finally gain from sale of stock. XPO Corporation has a minimum tax credit of $51,000 from 2010.
How much of a distribution from Au Sable is a dividend?
Up to $600 of the distribution could be a dividend depending on the balance in accumulated earnings and profits on the date of the distribution. Au Sable Corporation reported taxable income of $800,000 in 20X3 and paid federal income taxes of $272,000.
How many levels of taxation are there for corporate income?
A) Corporate income is subject to two levels of taxation: the regular tax and excess profits tax. B) Corporate income is taxed twice at the corporate level: first when earned and then a second time if appreciated property is distributed to a shareholder.
Can a distribution be a dividend?
B) A distribution can never be a dividend if current earnings and profits are negative. C) At a minimum, some portion of the distribution will be a dividend if current earnings and profits for the year are positive, even if accumulated earnings and profits are negative.