Tax Accounting Lone star company is a calendar-year corporation, and this year lone star reported $125,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star accumulated E&P was $15,000. At the beginning of the year, lone stars sole shareholder was Matt McCon. Lone star declared $37,500 in cash distributions on each of the following dates: March 31, June 30, September 30, and December 31. Suppose Matt sold half his shares to Chris Coop on June 1st for $52,500. How much dividend income will matt recognize this year? If matts basis in his lone star shares was $8250 at the beginning of the year, how much capital gain will he recognize on the sale and distributions from Lone Star?
Tax Accounting
Lone star company is a calendar-year corporation, and this year lone star reported $125,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star accumulated E&P was $15,000. At the beginning of the year, lone stars sole shareholder was Matt McCon. Lone star declared $37,500 in cash distributions on each of the following dates: March 31, June 30, September 30, and December 31.
Suppose Matt sold half his shares to Chris Coop on June 1st for $52,500. How much dividend income will matt recognize this year?
If matts basis in his lone star shares was $8250 at the beginning of the year, how much
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