At the Beginning of the Current Year,Doug and Alfred Each

question 37

Multiple Choice

At the beginning of the current year,Doug and Alfred each own 50% of Amaryllis Corporation (a calendar year taxpayer) .In July,Doug sold his stock to Kevin for $140,000.At the beginning of the year,Amaryllis Corporation had accumulated E & P of $240,000 and its current E & P is $280,000 (prior to any distributions) .Amaryllis distributed $300,000 on February 15 ($150,000 to Doug and $150,000 to Alfred) and distributed another $300,000 on November 1 ($150,000 to Kevin and $150,000 to Alfred) .Kevin has dividend income of:

• A)$150,000.
• B)$140,000.
• C)$110,000.
• D)$70,000.
• E)None of the above.

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Definitions:

R-Squared

A statistical measure that represents the portion of the variance for a dependent variable that's explained by an independent variable or variables in a regression model.

Sum of Squares

A statistical technique used to describe the total variation of a dataset by summing the squares of the differences from the mean.

F-Ratio

A statistical measure used in the analysis of variance (ANOVA), comparing the variance among group means to the variance within groups.

Studentized Residuals

Residuals in regression analysis that have been standardized by dividing by an estimate of their standard deviation to identify outliers.