Current E & P $400,000 an Accumulated E & P 200,000. During the year Zeta distribute 800,000 to shareholders(A & B-$400, 000 to each) A has a basis in his stock $50,000 ar 8 has a a basis of 200,000 Calculate the effect of the distribution on A and B

Current E & P $400,000 an Accumulated E & P 200,000. During the year Zeta distribute 800,000 to shareholders(A & B-$400, 000 to each) A has a basis in his stock $50,000 ar 8 has a a basis of 200,000 Calculate the effect of the distribution on A and B

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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Problem4
Current E & P $400,000 an Accumulated E & P 200,000. During the year Zeta distributes
$800,000 to shareholders(A & B-$400, 000 to each) A has a basis in his stock $50,000 and
B has a a basis of 200,000 Calculate the effect of the distribution on A and B

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