Longhorn Company Reports Current E&P of $100,000 in 20X3 and Accumulated

question 13

Multiple Choice

Longhorn Company reports current E&P of $100,000 in 20X3 and accumulated E&P at the beginning of the year of negative $200,000. Longhorn distributed $300,000 to its sole shareholder on January 1, 20X3. The shareholder's tax basis in his stock in Longhorn is $100,000. How is the distribution treated by the shareholder in 20X3?

• A) $300,000 dividend.
• B) $100,000 dividend, $100,000 tax-free return of basis, and $100,000 capital gain.
• C) $100,000 dividend and $200,000 tax-free return of basis.
• D) $0 dividend, $100,000 tax-free return of basis, and $200,000 capital gain.

Understand how different imaging techniques like MRI, fMRI, MEG, PET, DTI, and optical tomography work and their specific uses.

Learn about the contributions of animal models to understanding human neurological diseases.

Grasp the importance of spatial and temporal resolutions in brain imaging and their impact on research.

Understand the functioning and applications of various neuroscientific tools and technologies (e.g., cerebral voltammetry, CT scanning, TMS, optogenetics).

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Definitions:

Invests

The action of allocating resources, usually money, with the expectation of generating an income or profit.

Equally

In a manner that divides or distributes something in equal portions or shares.

Retiring Partner's Interest

The amount due to a partner who is exiting a partnership, representing their share of the partnership's assets after settling any liabilities.

Liquidating a Partnership

The process of terminating a partnership by selling off assets, paying off creditors, and distributing the remaining assets to partners.