Elvis Owns All of the Stock of Shadow Corporation

question 74

Multiple Choice

Elvis owns all of the stock of Shadow Corporation.The accumulated earnings and profits of Shadow Corporation at the end of the year are a deficit of $12,000.The current earnings and profits are $25,000.Elvis' basis for his stock is $290,000.He receives a distribution of $340,000 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 $13,000 and capital gain of $37,000.
• C)Dividend income of $25,000 and capital gain of $25,000.
• D)Dividend income of $0 and capital gain of $50,000.
• E)None of the above.

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Definitions:

Careless Employees

Workers who show a lack of attention or concern for accuracy, potentially leading to mistakes, inefficiencies, or safety issues in the workplace.

Employee Entitlements

Benefits and rights guaranteed to employees by law or company policy, such as leave entitlements and workplace protections.

Gender Discrimination

The unfair or prejudicial treatment of individuals based on their gender, impacting opportunities and outcomes.

Corporate Leaders

Individuals at the highest level of an organization who are responsible for strategic decisions and overall operations.