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Lone Star Company is a calendar-year corporation, and this year Lone Star reported $114,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E&P was $13,680. At the beginning of the year, Lone Star's sole shareholder was Matt McCon. Lone Star declared $34,200 in cash distributions on each of the following dates: March 31, June 30, September 30, and December

Lone Star Company is a calendar-year corporation, and this year Lone Star reported $114,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E&P was $13,680. At the beginning of the year, Lone Star's sole shareholder was Matt McCon. Lone Star declared $34,200 in cash distributions on each of the following dates: March 31, June 30, September 30, and December

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Lone Star Company is a calendar-year corporation, and this year Lone Star reported $114,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E&P was $13,680. At the beginning of the year, Lone Star's sole shareholder was Matt McCon. Lone Star declared $34,200 in cash distributions on each of the following dates: March 31, June 30, September 30, and December 31. (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) Suppose that Matt sold half of his shares to Chris Coop on June 1st for $47,000. How much dividend income will Matt recognize this year?
Transcribed Image Text:Lone Star Company is a calendar-year corporation, and this year Lone Star reported $114,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E&P was $13,680. At the beginning of the year, Lone Star's sole shareholder was Matt McCon. Lone Star declared $34,200 in cash distributions on each of the following dates: March 31, June 30, September 30, and December 31. (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) Suppose that Matt sold half of his shares to Chris Coop on June 1st for $47,000. How much dividend income will Matt recognize this year?
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