Bethel Corporation distributed $125,000 to its shareholders on December 31, 1997, the end of its taxable year. Bethel's capital structure was as follows: Capital stock--5,000 shares issued and outstanding $500,000 Current earnings and profits 1/1/97 - 12/31/97 $ 15,000 Accumulated earnings and profits 3/1/93 - 12/31/96 $ 75,000 Mr. Rutland held 200 shares of Bethel Corporation's stock. His basis in the stock was $100 per share. How much of the Bethel Corporation distribution is a dividend to Mr. Rutland? Which answer is correct to this question? A)$1400; B)3,000; C)3,600; D)$5,000

Bethel Corporation distributed $125,000 to its shareholders on December 31, 1997, the end of its taxable year. Bethel's capital structure was as follows: Capital stock--5,000 shares issued and outstanding $500,000 Current earnings and profits 1/1/97 - 12/31/97 $ 15,000 Accumulated earnings and profits 3/1/93 - 12/31/96 $ 75,000 Mr. Rutland held 200 shares of Bethel Corporation's stock. His basis in the stock was $100 per share. How much of the Bethel Corporation distribution is a dividend to Mr. Rutland? Which answer is correct to this question? A)$1400; B)3,000; C)3,600; D)$5,000

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter19: Corporations: Distributions Not In Complete Liquidation

Section: Chapter Questions

Problem 1BCRQ

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