Pantone Corporation is a calendar year taxpayer. Dave owns one-third (100 shares) of Pantone stock. His basis in the stock is $12,000. Sylvia owns two-thirds (200 shares) of Pantone stock. Her basis in the stock is $24,000. On Ju Pantone distributes $25,000 to Dave and $65,000 to Sylvia. Read the requirements Remaining distribution Return of capital Capital gain (loss) Remaining stock basis 12000 24000 Requirement b. Determine the tax consequences of the cash distributions to Dave and Sylvia if current E&P is $32,000 and accumulated E&P is $31,000. (Complete all input fields. For zero amounts, make sure to enter "0" in the a not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) Dave Sylvia - X 25000 65000 Requirements Distribution Dividend income Determine the tax consequences of the cash distributions to Dave and Sylvia in each of the following independent situations: a. Current E&P of $64,000; accumulated E&P of S140,000. Remaining distribution Return of capital b. Current E&P of $32,000; accumulated E&P of S31,000. Capital gain (loss) Remaining stock basis

Pantone Corporation is a calendar year taxpayer. Dave owns one-third (100 shares) of Pantone stock. His basis in the stock is $12,000. Sylvia owns two-thirds (200 shares) of Pantone stock. Her basis in the stock is $24,000. On Ju Pantone distributes $25,000 to Dave and $65,000 to Sylvia. Read the requirements Remaining distribution Return of capital Capital gain (loss) Remaining stock basis 12000 24000 Requirement b. Determine the tax consequences of the cash distributions to Dave and Sylvia if current E&P is $32,000 and accumulated E&P is $31,000. (Complete all input fields. For zero amounts, make sure to enter "0" in the a not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) Dave Sylvia - X 25000 65000 Requirements Distribution Dividend income Determine the tax consequences of the cash distributions to Dave and Sylvia in each of the following independent situations: a. Current E&P of $64,000; accumulated E&P of S140,000. Remaining distribution Return of capital b. Current E&P of $32,000; accumulated E&P of S31,000. Capital gain (loss) Remaining stock basis

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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