Husker Corporation Reportsa Deficit in Current E&P of ($200,000)in 20X3

question 53

Multiple Choice

Husker Corporation reportsa deficit in current E&P of ($200,000) in 20X3 and accumulated E&P at the beginning of the year of $300,000. Husker distributed $200,000 to its sole shareholder on December 31, 20X3. The shareholder's tax basis in her stock in Husker is $50,000. How is the distribution treated by the shareholder in 20X3?

• A)$200,000 dividend
• B)$100,000 dividend, $50,000 tax-free return of basis, and $50,000 capital gain
• C)$100,000 dividend and $100,000 tax-free return of basis
• D)$0 dividend, $50,000 tax-free return of basis, and $150,000 capital gain

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Definitions:

Group Therapy

A form of psychotherapy involving one or more therapists working with several individuals simultaneously, offering mutual support and the opportunity for participants to learn from each other's experiences.

Interpersonal Skills

The abilities that facilitate effective communication and interaction with other people.

Social Support

The perception or reality of assistance and emotional sustenance provided by family, friends, and others.

Less Effective

Describes an outcome or method that produces a lower level of desired results or success compared to other options or benchmarks.