What amount of Diego distribution

Assignment Help Accounting Basics
Reference no: EM132946323

Question - Diego owns 70% of Endothon Corporation's stock, while Maria owns the remaining 30%. Diego and Maria have a tax basis in Endothon's stock of $32,000 and $12,000, respectively.

Endothon has current earnings and profits (E&P) of $25,000 and no accumulated E&P. At year-end, Endothon makes a $75,000 distribution: $56,250 to Diego and $18,750 to Maria.

Required - What amount of Diego's distribution is treated as a nontaxable return of capital?

Reference no: EM132946323

Questions Cloud

Ethical issues in business : Business ethics can be defined as "the application of ethical values to business behavior," explains the 'Institute of Business Ethics'. It is a comprehensive t
How much interest did she pay during the fourth year : How much of the payment made at the end of the fourth year will go towards principal and how much will go towards interest?
Calculate the expected opportunity loss : Calculate the expected opportunity loss per night sustained by The Endless Point Rest
Create business message : To create business message, first decide on one goal: a) Increase sales or b) Build affinity with your customers. You can use the bullet points:
What amount of Diego distribution : At year-end, Endothon makes a $75,000 distribution: $56,250 to Diego and $18,750 to Maria. What amount of Diego distribution
Difference between start up finance and start up revenue : 1. What is sales revenue? How will you calculate it? 2. What is the difference between start up finance and start up revenue? explain
What would be the contribution margin per display case : If the three-diamond style ring has a sales price of $204, What would be the contribution margin per display case if each display case can display 22 ?rings?
Steps of the self-exclusion process : You observe a patron at a gaming machine. He has been gambling for more than 2 hours and is becoming more and more frustrated as he continues to lose money. Whe
How Much is the VAT Payable : Sales to Ordinary Corporation - Php. 2M and Service Rendered to Clients Php. 500k. How Much is the VAT Payable

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine the dollar amounts of Dividend Income

On January 2, 2017, Alpha Company purchased 10,000 shares of the stock of Zulu Company, Determine the dollar amounts of Dividend Income

  What is the cost of the ending work in process inventory

Total manufacturing costs of $954,000. If cost of goods manufactured is $960,000, what is the cost of the ending work in process inventory

  Calculate the current ratio for the year

Review the account balances of Ma and Pa Grocery as of December 31, 20##, in the Excel Template (attached). Calculate the current ratio for the year.

  Compute the manufacturing cycle efficiency

During the most recent month at Luinstra Corporation, queue time was 4.5 days, inspection time was 0.8 day, process time was 1.9 days, wait time was 5.1 days.

  How should btown account for the software development costs

How should BTown account for the software development costs? Show all appropriate journal entries under GAAP. If BTown used IFRS instead of USGAAP, would the accounting for the software be the same or different as of March 31, 2016?  Explain

  Explain to mr kristos le droit what is right in given action

Please evaluate and explain to Mr Kristos Le Droit (the new treasurer of LOACH) what was right and what was wrong in the above action.

  Should inventory be evaluated for impairment

Case - Three Little Pigs, Inc. Should inventory be evaluated for impairment under the lower of cost or market method on a total inventory basis

  Compute the companys return on common stockholders

Determine the company's net income and earnings per share for 2021 and 2022.Compute the company's return on common stockholders

  What is the number of shares outstanding

Assume that 65,000 shares were originally issued and 13,300 were subsequently reacquired. What is the number of shares outstanding

  Taxpayer with the higher after-tax return

Bonds, D, Inc. bonds are selling for $1,000 each with an interest rate of 7%. Tax-exempt bonds issued by the State of Kentucky are selling for $1,000 each with an interest rate of 3%. Which bond provides a taxpayer with the higher after-tax return..

  Impact of audit reports

Determine the stakeholders impacted by audit reports. Analyze the impact of audit reports for each category of stakeholders.

  How quickly is our company able to sell its inventory

How quickly is our company able to sell its inventory? Will our company be able to make interest payments as they become due

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