Distribution is taxable dividend income

Reference no: EM13912823

On January 1 of the current year, Quail Corp., an accrual-basis, calendar-year C corporation, had accumulated earnings and profits (E & P) of $20,000. On December 31 of the current year, Quail Corp. has current E & P of $24,000, earned evenly throughout the year. Quail made two distributions to shareholders during the year: $30,000 on July 1 and $30,000 on December 31. How much of the December 31 distribution is taxable dividend income for Devi?

a. $7,000

b. $11,000

c. $6,000

d. $1,000

Reference no: EM13912823

Questions Cloud

Budgeted activity for the month : Olivera Corporation's performance report for last month shows that actual indirect materials cost, a variable cost, was $31,178 and that the spending variance for indirect materials cost was $2,261 unfavorable. During that month, the company worked 1..

Contribution margin is disclosed : The contribution margin is disclosed-Variable selling expenses are not subtracted in calculating contribution margin-Arbitrary cost allocations are disregarded.

Vaswani company : Vaswani Company provides the following information for their first year of operations-Sales, 5,000 units @ $10 each; total production, 7,500 units.

Significantly influence and outcome : If the person who decides how voting is to be done can significantly influence the outcome, which of the following must be true of the voting system.

Distribution is taxable dividend income : On December 31 of the current year, Quail Corp. has current E & P of $24,000, earned evenly throughout the year. Quail made two distributions to shareholders during the year: $30,000 on July 1 and $30,000 on December 31. How much of the December 31 d..

Preference aggregation mechanism : Which of the following terms defines a preference aggregation mechanism that satisfies the properties of dominance, transitivity, and independence of irrelevant alternatives

Balance sheet for the investment : Prepare the January 1 & December 31 general journal entries for Flip Company- How much should the Flip Company report on the balance sheet for the investment in Flimsy as the end of 2014

Accumulated earnings and profits : At the beginning of the year, Crispin, a C corporation, had a deficit of $35,000 in accumulated earnings and profits (E & P). For the current year, Crispin reported E & P of $12,000. Crispin distributed $10,000 during the year. What was the amount of..

Inventory item for abc company : Compute the ending inventory value for each inventory item for ABC Company

User Account

All Pages