5-26 - Distribution to Robert = 950,000 Dividend Income =...

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ACCT 467 Kristen Jack Chapter 5 – Problem 26 2/12/2012 Land basis = 300,000 Note = 900,000 (5 installments, 1 st next year) Gain = 600,000 (not taxed this year) Accumulated E & P Deficit = (400,000) E & P before land sale = (100,000) Robert Basis of Stock = 150,000
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Unformatted text preview: Distribution to Robert = 950,000 Dividend Income = Current E & P + Gain on Sale = (100,000) + 600,000 = $500,000 Capital Gain = Distribution – Dividend – Basis of Stock = 950,000 – 500,000 – 150,000 = $300,000...
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