Corporate tax problem, distributions-check my answers??

label Accounting
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

X inc distributed following property on Dec 15 2013 to its only s/h Joe. Only distribution made this year. At time of distribution X inc had a deficit in accumulate E&P of $32,000 and had current E&P (excluding the property distribution) of $35,000.  FMV of property distributed= $137,000, Adj. tax basis of property= $145,000, liability distributed with property= $100,000, Joe's stock basis prior to distribution= $12,000

a) How much does X inc E&P decrease from the distribution of the property? ($45,000? or is it limited to $35,000?)  

b)X inc's accumulated E&P on 1/1/14? (still a deficit of $32,000?)  

c)how should joe treat the distribution on his 2013 tax return? (dividend income?)  

d)Joes' basis in the property received? ($137,000? bc it's equal to the FMV?)  

e)Joe's stock basis after the distribution? ($2,000?...12,000-10,000)  

f)Joe's journal entry recording the receipt of the property?

Jul 13th, 2015

Thank you for the opportunity to help you with your question!

YES YOUR ANSWERS ARE CORRECT

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jul 13th, 2015

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Jul 13th, 2015
...
Jul 13th, 2015
Oct 21st, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer