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Question 21 3.33333 out of 3.33333 pointsOn January 1 of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of $45,000. During the year, Blue incurs a net loss of $50,000 from operations that accrues ratably. On June 30 of the current year, Blue distributes $25,000 to Emily, its sole shareholder. How much of the $25,000 represents ordinary dividend income to Emily?
Question 22 3.33333 out of 3.33333 pointsPearl Corporation, which owns stock in Opal Corporation, had net operating income of $125,000 for the year. Opal pays Pearl a dividend of $100,000. Pearl takes a dividends received deduction of $65,000. Which of the following statements is correct?Answers:
Question 23 3.33333 out of 3.33333 pointsPhibi owns 100% of the stock of Poodle Corporation. In the current year Phibi transfers an installment obligation, tax basis of $20,000 and fair market value of $75,000, for additional stock in Poodle worth $75,000. Which of the following is correct?
Answer Feedback: Correct. Response Feedback: An installment obligation qualifies as "property" under Section 351. Thus, Phibi recognizes no gain on the transfer. Poodle has a basis of $20,000 in the installment obligation. pp. 3-5 and 3-12 Question 24 3.33333 out of 3.33333 pointsPink Corporation has a deficit in accumulated E & P of $50,000. For 2018, it has current E & P of$40,000. On March 31, 2018, Pink distributes $55,000 to its sole shareholder, Corrine. Corrine has a basis of $10,000 in her stock in Pink Corporation. Which of the following is correct?