Elvis Owns All of the Stock of White Corporation

question 74

Multiple Choice

Elvis owns all of the stock of White Corporation. The accumulated earnings and profits of White Corporation at the beginning of the year are a deficit of $20,000. The current earnings and profits are $30,000. Elvis' basis for his stock is $250,000. He receives a distribution of $300,000 on the last day of the tax year. How much dividend income and/or capital gain should Elvis report?

• A)$0.
• B)Dividend income of $30,000 and capital gain of $20,000.
• C)Dividend income of $30,000 and capital gain of $0.
• D)Dividend income of $10,000 and capital gain of $20,000.
• E)None of the above.

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Definitions:

Teenage Pregnancy

A term used to describe pregnancies in adolescent females under the age of 20.

Suicide

The act of intentionally causing one's own death, often associated with factors like mental disorders, substance abuse, difficult life situations, or feelings of despair.

Adolescents

Refers to individuals in the transitional stage of physical and psychological development that generally occurs during the period from puberty to legal adulthood.

Warning Signs

Early indicators or symptoms of potential health issues or dangers that suggest the need for caution or preventive measures.