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QUESTION
This year, Sooner Company reports current Eamp;P of negative $368,000. Its accumulated Eamp;P at the beginning of the year was $224,000.
This year, Sooner Company reports current E&P of negative $368,000. Its accumulated E&P at the beginning of the year was $224,000. Sooner distributed $448,000 to its sole shareholder, Boomer Wells, on June 30 of this year. Boomer's tax basis in his Sooner stock is $90,000.
- How much of the $448,000 distribution is treated as a dividend to Boomer?
- What is Boomer's tax basis in his Sooner stock after the distribution?
- What is Sooner's balance in accumulated E&P on the first day of next year?
