Branch is not a separate legal entity The following information pertains to

Branch is not a separate legal entity the following

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or other unit of business located at a different location from the main office or headquarters. Branch is not a separate legal entity. The following information pertains to Dahl Corp.:Accumulated earnings and profits atJanuary 1, 2017$120,000Earnings and profits for the year ended December 31, 2017160,000
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Cash distributions to individual shareholders during 2017360,000What is the total amount of distributions taxable as dividend income to Dahl’s shareholders in 2017? Dahl Corp. was organized and commenced operations in 1944. At December 31, 2017, Dahl had accumulated earnings and profits of $9,000 before a dividend declaration and distribution. On December 31, 2017, Dahl distributed cash of $9,000 and a vacant parcel of land to Mr. Green, Dahl’s only shareholder. At the date of distribution, the land had a basis of $5,000 and a fair market value of $40,000. What was Mr. Green’s taxable dividend income in 2017 from these distributions assuming a 35% corporate tax rate?
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Bob owns 250 shares of Rice Corporation. Rice Corporation plans on redeeming 100 shares of its 500 shares of common stock outstanding. Below what percentage must Bob’s interest be reduced if the redemption is to be substantially disproportionate? Mary, an individual shareholder, owns 125 shares of West Corporation. West Corporation has 500 shares of common stock outstanding. If West Corporation redeems 100 shares of common stock from its shareholders, what is the least number of Mary’s shares that will need to be redeemed in order for the redemption to be substantially disproportionate to Mary? CHOICES: A. 46, B. 80, C. 10, D. 45
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  • Spring '17
  • Taxation in the United States, fair market value

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