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Which one of the following distributions is nontaxable? 1) Mutual fund distributions from its net realized long-term capital gains in the amount o $1,000. You have an adjusted basis of $10,000 in the mutual fund. O2) Return of capital distribution from a utility company in the amount of $2,000. You have a zero basis in this stock. 3) Dividend on insurance policy in the amount of $1,000. As of the date of this dividend your net premiums exceed the total dividends by $3,500. 4) Your share of an ordinary dividend received by an S corporation in the amount of $25,000.

Which one of the following distributions is nontaxable? 1) Mutual fund distributions from its net realized long-term capital gains in the amount o $1,000. You have an adjusted basis of $10,000 in the mutual fund. O2) Return of capital distribution from a utility company in the amount of $2,000. You have a zero basis in this stock. 3) Dividend on insurance policy in the amount of $1,000. As of the date of this dividend your net premiums exceed the total dividends by $3,500. 4) Your share of an ordinary dividend received by an S corporation in the amount of $25,000.

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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Which one of the following distributions is nontaxable? 1) Mutual fund distributions from its net realized long-term capital gains in the amount of $1,000. You have an adjusted basis of $10,000 in the mutual fund. 02) Return of capital distribution from a utility company in the amount of $2,000. You have a zero basis in this stock. 3) Dividend on insurance policy in the amount of $1,000. As of the date of this dividend your net premiums exceed the total dividends by $3,500. 4) Your share of an ordinary dividend received by an S corporation in the amount of $25,000.
Transcribed Image Text:Which one of the following distributions is nontaxable? 1) Mutual fund distributions from its net realized long-term capital gains in the amount of $1,000. You have an adjusted basis of $10,000 in the mutual fund. 02) Return of capital distribution from a utility company in the amount of $2,000. You have a zero basis in this stock. 3) Dividend on insurance policy in the amount of $1,000. As of the date of this dividend your net premiums exceed the total dividends by $3,500. 4) Your share of an ordinary dividend received by an S corporation in the amount of $25,000.
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