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    Dividends Feportable by Stockholders of Rockridge Corporation

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    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.

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    https://brainmass.com/business/accounting-for-corporations/dividends-reportable-stockholders-rockridge-corporation-263908

    Solution Summary

    The solution examines dividend reportable by stockholders of Rockridge Corporation. The gross amount of reportable by each stockholders as a dividend is determined.

    $2.19