Corporate income tax distributions

Price: $5 USD

Question description

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

Update 2: 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?

Studypool has helped 1,244,100 students
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1827 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors