XYZ declared a $1 per share dividend on August 15. The date of record for the dividend was September 1 (the stock began selling ex-dividend on September 2). The dividend was paid on September 10. Ellis is a cash-method taxpayer. Determine if he must include the dividends in gross income under the following independent circumstances. b. Ellis bought 105 shares of XYZ stock on August 1 for $22 per share. Ellis sold his XYZ shares on September 5 for $25 per share. Ells received the $105 dividend on September 10 (note that even though Ellis didn't own the stock on September 10, he still received the dividend because he was the shareholder on the record date). Answer is complete but not entirely correct. Amount Economic Income 105 Amount included in Gross Income 105 XYZ declared a $1 per share dividend on August 15. The date of record for the dividend was September 1 (the stock began selling ex-dividend on September 2). The dividend was paid on September 10. Ellis is a cash-method taxpayer. Determine if he must include the dividends in gross income under the following independent circumstances. C. Ellis bought 105 shares of XYZ stock for $24 per share on August 20. Ellis received the $105 dividend on September 10. Ellis stil owns the shares at year-end. Amount Economic Income Amount included in Gross Income
XYZ declared a $1 per share dividend on August 15. The date of record for the dividend was September 1 (the stock began selling ex-dividend on September 2). The dividend was paid on September 10. Ellis is a cash-method taxpayer. Determine if he must include the dividends in gross income under the following independent circumstances. b. Ellis bought 105 shares of XYZ stock on August 1 for $22 per share. Ellis sold his XYZ shares on September 5 for $25 per share. Ells received the $105 dividend on September 10 (note that even though Ellis didn't own the stock on September 10, he still received the dividend because he was the shareholder on the record date). Answer is complete but not entirely correct. Amount Economic Income 105 Amount included in Gross Income 105 XYZ declared a $1 per share dividend on August 15. The date of record for the dividend was September 1 (the stock began selling ex-dividend on September 2). The dividend was paid on September 10. Ellis is a cash-method taxpayer. Determine if he must include the dividends in gross income under the following independent circumstances. C. Ellis bought 105 shares of XYZ stock for $24 per share on August 20. Ellis received the $105 dividend on September 10. Ellis stil owns the shares at year-end. Amount Economic Income Amount included in Gross Income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:XYZ declared a $1 per share dividend on August 15. The date of record for the dividend was September 1 (the stock
began selling ex-dividend on September 2). The dividend was paid on September 10. Ellis is a cash-method taxpayer.
Determine if he must include the dividends in gross income under the following independent circumstances.
b. Ellis bought 105 shares of XYZ stock on August 1 for $22 per share. Ellis sold his XYZ shares on September 5 for $25 per share. Ellis
received the $105 dividend on September 10 (note that even though Ellis didn't own the stock on September 10, he still received the
dividend because he was the shareholder on the record date).
Answer is complete but not entirely correct.
Amount
Economic Income
105
Amount included in Gross Income
105
XYZ declared a $1 per share dividend on August 15. The date of record for the dividend was September 1 (the stock
began selling ex-dividend on September 2). The dividend was paid on September 10. Ellis is a cash-method taxpayer.
Determine if he must include the dividends in gross income under the following independent circumstances.
c. Ellis bought 105 shares of XYZ stock for $24 per share on August 20. Ellis received the $105 dividend on September 10. Ellis still
owns the shares at year-end.
Amount
Economic Income
Amount included in Gross Income
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