oblem 19-34 (Algorithmic) (LO. 1, 4) the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of $110,000. Blue's current E & P is 56,000, and at the end of the year, it distributes $220,000 ($110,000 each) to its equal shareholders, Pooja and Jon. Pooja's stock basis is 15,400; Jon's stock basis is $61,600. ow is the distribution treated for tax purposes? an amount is zero, enter "0". poja has the following: vidend income: $ apital gain: $ cock basis after distribution: n has the following: vidend income: apital gain: $ tock basis after distribution: $
oblem 19-34 (Algorithmic) (LO. 1, 4) the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of $110,000. Blue's current E & P is 56,000, and at the end of the year, it distributes $220,000 ($110,000 each) to its equal shareholders, Pooja and Jon. Pooja's stock basis is 15,400; Jon's stock basis is $61,600. ow is the distribution treated for tax purposes? an amount is zero, enter "0". poja has the following: vidend income: $ apital gain: $ cock basis after distribution: n has the following: vidend income: apital gain: $ tock basis after distribution: $
Chapter19: Corporations: Distributions Not In Complete Liquidation
Section: Chapter Questions
Problem 32P
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Transcribed Image Text:Problem 19-34 (Algorithmic) (LO. 1, 4)
At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of $110,000. Blue's current E & P is
$66,000, and at the end of the year, it distributes $220,000 ($110,000 each) to its equal shareholders, Pooja and Jon. Pooja's stock basis is
$15,400; Jon's stock basis is $61,600.
How is the distribution treated for tax purposes?
If an amount is zero, enter "0".
Pooja has the following:
Dividend income: $
Capital gain: $
Stock basis after distribution: $
Jon has the following:
Dividend income: $
Capital gain: $
Stock basis after distribution: $
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