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Determine the allocation of the distributions by completing the table below. Assu

Determine the allocation of the distributions by completing the table below. Assu

FINANCIAL ACCOUNTING
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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Question

D1.

Account 

61、5・・・・・・4、... 3 On January 1 of the current year, Rhondell Corporation has accumulated E & P of $98,000. Current E & P for the year is $294,000, earned evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January 1 to April 30. On May 1, Elizabeth sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $156,800 ($78,400 to Elizabeth and $78,400 to Jonathan) on April 30 and a total of $274,400 ($137,200 to Jonathan and $137,200 Marshall) on December 31. Determine the allocation of the distributions by completing the table below. Assume the shareholders have sufficient basis in their stock for any amount that is treated as return of capital. If an amount is zero, enter "0". If required, round any division to two decimal places and use in subsequent computations. Round final answers to the nearest dollar. April 30 distribution of $156,800 December 31 distribution of $274,400 From Current E & P ox 0 X From Accumulated E & P $ $ ox 0 X Treated as Return of Capital $ $ 0 0 X
Transcribed Image Text:61、5・・・・・・4、... 3 On January 1 of the current year, Rhondell Corporation has accumulated E & P of $98,000. Current E & P for the year is $294,000, earned evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January 1 to April 30. On May 1, Elizabeth sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $156,800 ($78,400 to Elizabeth and $78,400 to Jonathan) on April 30 and a total of $274,400 ($137,200 to Jonathan and $137,200 Marshall) on December 31. Determine the allocation of the distributions by completing the table below. Assume the shareholders have sufficient basis in their stock for any amount that is treated as return of capital. If an amount is zero, enter "0". If required, round any division to two decimal places and use in subsequent computations. Round final answers to the nearest dollar. April 30 distribution of $156,800 December 31 distribution of $274,400 From Current E & P ox 0 X From Accumulated E & P $ $ ox 0 X Treated as Return of Capital $ $ 0 0 X
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