(The following information applies to the questions displayed below.] Lone Star Company is a calendar-year corporation, and this year Lone Star reported $115,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E&P was $13,800. At the beginning of the year, Lone Star's sole shareholder was Matt McCon. Lone Star declared $34,500 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.) b. Suppose that Matt sold half of his shares to Chris Coop on June 1st for $47,500. How much dividend income will Matt recognize this year? Dividend recognized

(The following information applies to the questions displayed below.] Lone Star Company is a calendar-year corporation, and this year Lone Star reported $115,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E&P was $13,800. At the beginning of the year, Lone Star's sole shareholder was Matt McCon. Lone Star declared $34,500 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.) b. Suppose that Matt sold half of his shares to Chris Coop on June 1st for $47,500. How much dividend income will Matt recognize this year? Dividend recognized

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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