Required information [The following information applies to the questions displayed below.] Lone Star Company is a calendar-year corporation, and this year Lone Star reported $148,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E&P was $17,760. Lone Star declared $44,400 in cash distributions on each of the following dates: April 1, July 1, October 1, and December 31. Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. b. Suppose that Matt owned all Lone Star's shares at the beginning of the year and sold half of the shares to Chris on June 1st for $59,200. How much dividend income will Matt recognize this year? Dividend recognized

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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Required information
[The following information applies to the questions displayed below.]
Lone Star Company is a calendar-year corporation, and this year Lone Star reported $148,000 in current E&P that accrued
evenly throughout the year. At the beginning of the year, Lone Star's accumulated E&P was $17,760. Lone Star declared
$44,400 in cash distributions on each of the following dates: April 1, July 1, October 1, and December 31.
Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.
b. Suppose that Matt owned all Lone Star's shares at the beginning of the year and sold half of the shares to Chris on June 1st for
$59,200. How much dividend income will Matt recognize this year?
Dividend recognized
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] Lone Star Company is a calendar-year corporation, and this year Lone Star reported $148,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E&P was $17,760. Lone Star declared $44,400 in cash distributions on each of the following dates: April 1, July 1, October 1, and December 31. Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. b. Suppose that Matt owned all Lone Star's shares at the beginning of the year and sold half of the shares to Chris on June 1st for $59,200. How much dividend income will Matt recognize this year? Dividend recognized
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