Lacy Jones and Sarah Breau each own one-half of the stock of Rockridge Corporation, which has earnings and profits of $15,000. Rockridge distributes property with a fair market value of $24,000 to its stockholders, each stockholder receiving property with a fair market value of $12,000. The gross amount reportable by each stockholder as a dividend is?
My choices $0, $4,500, $7,500 or $12,000.© BrainMass Inc. brainmass.com October 9, 2019, 11:40 pm ad1c9bdddf
The solution examines dividend reportable by stockholders of Rockridge Corporation. The gross amount of reportable by each stockholders as a dividend is determined.