Aggie Corporation made a distribution of $535,000 to Rusty Cedar in partial liquidation of the company on Dec of this year. Rusty, an individual, owns 100 shares (100 percent) of Aggie Corporation. The distribution was in ex 50 percent of Rusty's stock in the company. At the time of the distribution, the shares had a fair market value o share. Rusty's tax basis in the shares was $32 per share. Aggie had total E&P of $8,020,000 at the time of the Assuming Aggie made no other distributions to Rusty during the year, by what amount does Aggie reduce its total partial liquidation?

Aggie Corporation made a distribution of $535,000 to Rusty Cedar in partial liquidation of the company on Dec of this year. Rusty, an individual, owns 100 shares (100 percent) of Aggie Corporation. The distribution was in ex 50 percent of Rusty's stock in the company. At the time of the distribution, the shares had a fair market value o share. Rusty's tax basis in the shares was $32 per share. Aggie had total E&P of $8,020,000 at the time of the Assuming Aggie made no other distributions to Rusty during the year, by what amount does Aggie reduce its total partial liquidation?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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