A henry has dividend income of 50000 and a tax basis

A) Henry has dividend income of
$50,000 and a tax basis in his remaining
shares of $100 per share.
B) Henry has capital gain of $25,000
and a tax basis in his remaining shares of
$100 per share.
C) Henry has dividend income of
$50,000 and a tax basis in his remaining
shares of $200 per share.
D) Henry has capital gain of $25,000
and a tax basis in his remaining shares of
$200 per share.

88) General Inertia Corporation made a
pro rata distribution of $50,000 to Tiara,
Incorporated in partial liquidation of the
company on December 31, 20X3. Tiara,
Incorporated owns 500 shares (50 percent)
of General Inertia. The distribution was in
exchange for 250 shares of Tiara's stock in
the company. After the partial liquidation,
Tiara continued to own 50 percent of the
remaining stock in General Inertia. At the
time of the distribution, the shares had a fair
market value of $200 per share. Tiara's
adjusted tax basis in the shares was $100 per
share. General Inertia had total E&P of
$800,000 at the time of the distribution.
What amount of dividend or capital gain
does Tiara recognize because of the
transaction?
ESSAY. Write your answer in the space
provided or on a separate sheet of paper.
89) Superior Corporation reported
taxable income of $1,000,000 in 20X3.
Superior paid a dividend of $100,000 to its
sole shareholder, Mary Yooper. Superior
Corporation is subject to a flat-rate tax of 21
percent. The dividend meets the
requirements to be a "qualified dividend,"
and Mary is subject to a tax rate of 15
percent on the dividend. What is the total
federal income tax imposed on the corporate
income earned by Superior, including taxes
on the amount distributed to Mary as a
dividend?
90) Superior Corporation reported
taxable income of $1,350,000 in 20X3.
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Superior paid a dividend of $135,000 to its
sole shareholder, Mary Yooper. Superior
Corporation is subject to a flat-rate tax of 21
percent. The dividend meets the
requirements to be a "qualified dividend,"
and Mary is subject to a tax rate of 16
percent on the dividend. What is the total
federal income tax imposed on the corporate
income earned by Superior, including taxes
on the amount distributed to Mary as a
dividend?