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    Dividends and Returns of Capital

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    Complete the following schedule for each case. Assume the shareholders have ample basis in the stock investment.

    Accumulated Current Cash Distributions Dividend Return of
    E&P Beginning E&P All on last day Income Capital
    Of Year of Year

    a) $150,000 $70,000 $130,000 $_________ $________

    b) 200,000 (60,000) 210,000 __________ ________

    c) 130,000 50,000 150,000 __________ _________

    d) 120,000 (40,000) 130,000 __________ _________

    e) Same as (d) except the distribution of $130,000
    is made on June 30, and the corporation uses the
    calendar year for tax purposes. ___________ ________

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    https://brainmass.com/business/accounting-for-corporations/dividends-and-returns-of-capital-207176

    Solution Preview

    Accumulated Current Cash Distributions Dividend Return of
    E&P Beginning E&P All on last day Income Capital
    Of Year of Year

    a) $150,000 $70,000 $130,000 ...

    Solution Summary

    This solution contains calculations of dividends and returns of capital for corporations.

    $2.19