Calculate fannie taxable dividend income

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Question - Amelia, the sole shareholder, had a basis of $60,000 in the stock of Ceasar Corporation which she sold to Fannie on July 31, 2019 for $140,000. Ceasar Corporation had positive Accumulated Earnings and Profits (E&P) for 2019 of $50,000. During 2019, Ceasar Corporation made the following distributions: $100,000 Cash to Amelia on July 1, 2019, and $100,000 Cash to Fannie on December 31, 2019. Calculate Fannie Taxable Dividend Income for 2019?

1. $25,000

2. $70,000

3. $100,000

4. $90,000

Reference no: EM132635564

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