Tax Drill - Qualified Dividend Rule On December 1, 2022, Bigham Corporation pays a dividend of $4.00 on each share of its common stock. Vanessa and Gena, two unrelated shareholders, each own 5,000 shares of the stock. Vanessa has owned her stock for two years while Gena purchased her stock on November 3, 2022. On December 15, 2022, both Vanessa and Gena sold all of their Bigham stock after Bigham announced it would be restating its earnings for the prior two years. How does each shareholder treat the $20,000 dividend from Bigham? The $20,000 that Vanessa receives is receives is and the $20,000 that Gena nontaxable taxed at ordinary income rates subject to preferential 0% / 15% /20% treatment

On January 1, 2024, Wallace, Inc. decides to invest in 12,800 shares of Stallion stock when the stock is selling for $11 per share On May 1, 2024, Stallion paid a 50 50 per share cash dividend to stockholders. On December 31, 2024, Stallion reports net income of $120,000 for 2024. Assume Stallion has 32,000 shares of voting stock outstanding during 2024 and Wallace has significant influence over Stallion Read the requirements EXITO Requirement 1. Identify what type of investment the Stallion stock is for Wallace Wallace's investment would be investment

In 2020, Mr. Dale paid $40,700 for 3,700 shares of GKL Mutual Fund and elected to reinvest his year-end dividends in additional shares. In 2020 and 2021, he received Form 1099s reporting the following: 2020 2021 Dividends Reinvested $5,365 6,140 Shares Purchased Assume the taxable year is 2022. 393 385 Required A Required B Price per Total Shares Share $13.651 15.948 Required: a. If Mr. Dale sells his 4,478 shares for $15 per share, compute his recognized gain. b. If he sells only 1,250 shares for $15 per share and uses the FIFO method to determine basis, compute his recognized gain. c. If he sells only 1,250 shares for $15 per share and uses the average basis method, compute his recognized gain. Required C Owned Complete this question by entering your answers in the tabs below. 4,093 4,478 < Required B If he sells only 1,250 shares for $15 per share and uses the average basis method, compute his recognized gain. Note: Do not round intermediate calculations. Round your final answer to…

Data pertaining to dividends from Jenny Company’s ordinary shares investments for the year 2023 follow: * On October 1, 2023, Jenny received P500,000 liquidating dividend from A Company.  Jenny owns a 10% interest in A Company. * Jenny owns a 5% interest in B Company which declared a P5,000,000 cash dividend on November 15, 2023 to stockholders of record on December 15, 2023 payable on January 15, 2024.  Jenny does not have ability to exercise significant influence over B Company. * On December 1, 2023, Jenny received from C Company a dividend in kind of one share D Company ordinary shares for every 4 C Company ordinary shares held.  Jenny holds 100,000 C Company shares, which have a market price of P50 per share on December 1, 2023.  The market price of D Company ordinary is P30 per share.  What amount should Jenny report as dividend income in its 2023 income statement?