Tiny and im each
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: accounting
![4
of 5
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[The following information applies to the questions displayed below.]
Tiny and Tim each owns half of the 100 outstanding shares of Flower Corporation. This year, Flower
reported taxable income of $6,000. In addition, Flower received $20,000 of life insurance proceeds due
to the death of an employee (Flower paid $500 in life insurance premiums this year). Flower had $5,000
of accumulated E&P at the beginning of the year. (Leave no answer blank. Enter zero if applicable.)
b. Flower distributed $6,000 on February 15 and $30,000 on August 1. What total amount of dividends will Tiny and Tim
report? (Do not round intermediate calculations.)
Total
dividends
Answer is complete but not entirely correct.
February
15
$
Return to question
6,000
August 1
$ 23,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7fe5a73-45e4-4166-8ba1-50e355550dfc%2Fa00137f9-3076-442a-a3ff-137323bcad5b%2Fouphipq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:4
of 5
Required information
[The following information applies to the questions displayed below.]
Tiny and Tim each owns half of the 100 outstanding shares of Flower Corporation. This year, Flower
reported taxable income of $6,000. In addition, Flower received $20,000 of life insurance proceeds due
to the death of an employee (Flower paid $500 in life insurance premiums this year). Flower had $5,000
of accumulated E&P at the beginning of the year. (Leave no answer blank. Enter zero if applicable.)
b. Flower distributed $6,000 on February 15 and $30,000 on August 1. What total amount of dividends will Tiny and Tim
report? (Do not round intermediate calculations.)
Total
dividends
Answer is complete but not entirely correct.
February
15
$
Return to question
6,000
August 1
$ 23,000
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