How much income does ethan recognize

Assignment Help Accounting Basics
Reference no: EM131808852

Question - At the beginning of the year, Oak Corp. (an S corporation) had $50,000 in its AAA, $30,000 of earnings and profits from prior C corporation years. During the year, Oak earned $25,000 of ordinary income and paid $100,000 in distributions to its shareholders. Assume that Ethan owns 25% of Oak Corp. his basis in Oak Corp. stock at the beginning of the year is $5,000, and his share of the distribution was $25,000. How much income does Ethan recognize this year from these transactions?

A) $0.

B) $6,250.

C) $7,500.

D) $20,000.

E) None of the above.

Reference no: EM131808852

Questions Cloud

Calculate saturn predetermined overhead rate : Calculate Saturn's predetermined overhead rate. In April, Saturn incurred actual overhead costs of $1,375,000 and used 24,000 hours
Explain different kinds of structure in bivariate data : Draw a scatterplot to illustrate each of the following kinds of structure in bivariate data. There is no need to work from data for this question.
Perform comparative analysis : What are the benefits for companies who perform comparative analysis?
What forces will shape the development of juvenile justice : We are at a decision point in time, what will the future juvenile justice system look like? What forces will shape the development of juvenile justice?
How much income does ethan recognize : Assume that Ethan owns 25% of Oak Corp. his basis in Oak Corp. stock at the beginning of the year is $5,000, How much income does Ethan recognize
Find a strong positive correlation : If you find a strong positive correlation, does this prove that large values of X cause the Y values to be large? If not, what other possibilities are there?
Organization capacity for learning and growth : Read and study "The Balanced Scorecard" on page 634. A balanced scorecard contains four major perspectives: financial performance, customer service
The claim to be false or deceptive advertising : Determine if the FTC would deem the claim to be false or deceptive advertising.
How many rockers of each model should jim helmer produce : how many rockers of each model should Jim Helmer produce to maximize profits

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd