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Mandarini Mandarini
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7 years ago
Rocky Corporation, an S corporation, reports the following results for the current year:

Ordinary income   $70,000
Long-term capital gain   20,000
Municipal bond interest income   10,000
Domestic corporate dividends   6,000
Charitable contributions   16,000

Rocky's AAA and accumulated E&P balances at the beginning of the year are $80,000 and $50,000, respectively. Rocky makes a $100,000 cash distribution to its sole shareholder on June 1 and a second $100,000 cash distribution on December 1. The shareholder's basis for Rocky stock on January 1 was $120,000. Discuss the tax consequences of these transactions.
Textbook 
Prentice Hall's Federal Taxation 2014 Corporations, Partnerships, Estates & Trusts

Prentice Hall's Federal Taxation 2014 Corporations, Partnerships, Estates & Trusts


Edition: 27th
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strwbrrystrwbrry
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Every man, wherever he goes, is encompassed by a cloud of comforting convictions, which move with him like flies on a summer day.
   --Bertrand Russell, 1950

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Mandarini Author
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7 years ago
Thanks for your help!!
DAGINC
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Yesterday
Thanks
GeorgeNeist
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2 hours ago
Smart ... Thanks!
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