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:

Motility

The ability of organisms and cells to move spontaneously and actively, consuming energy in the process.

Amoebozoa

A phylum of single-celled organisms characterized by their amoeboid movement and feeding by phagocytosis.

Excavates

A group of unicellular organisms, many of which are flagellates, that includes both free-living and parasitic species.

Ciliates

A group of protozoans characterized by the presence of hair-like structures called cilia used for movement and feeding.