Chum Corporation distributed $20,000 cash to George, its sole Class A common stockholder in May of the current year and it made a $20,000 cash distribution to Bennie its sole Class B common stockholder in December of the current year. The corporation has $15,000 in current earnings and profits for the year and $18,000 in accumulated earnings and profits. How will the corporation identify the distribution to George and Bennie?© BrainMass Inc. brainmass.com June 3, 2020, 11:33 pm ad1c9bdddf
Class A & Class B shares are usually preferred stock/shares
Preferred stock is paid a dividend prior to any distribution to common stockholders, and the dividend is ...
The solution classity earnings of Chum Corporation in Class A & Class B stockholder.