Stacey and Eva Each Own One-Half of the Stock in Parakeet

question 26

Multiple Choice

Stacey and Eva each own one-half of the stock in Parakeet Corporation, a calendar year taxpayer. Cash distributions from Parakeet are $350,000 to Stacey on April 1 and $150,000 to Eva on May 1. If Parakeet's current E & P is $60,000, how much is allocated to Eva's distribution?

• A) $5,000
• B) $10,000
• C) $18,000
• D) $30,000
• E) None of these.

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Definitions:

Additive Inverse

A number that when added to a given number results in a sum of zero; essentially, the negative counterpart of a number.

Quotient

The result obtained when one quantity is divided by another.

Standard Form

A way of writing numbers using the digits 0-9, where each digit is placed in a specific location to indicate its value.

Complex Number

A number comprising a real and an imaginary part, expressed as a + bi, where a and b are real numbers, and i is the square root of -1.