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Rowena Is the Sole Shareholder of Rail,a Calendar Year C

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Essay

Rowena is the sole shareholder of Rail,a calendar year C corporation.As of January 1,2014,Rail had a $300,000 deficit in accumulated E & P.For 2014,it had current E & P of $110,000 and distributed to Rowena a cash dividend of $170,000.As of January 1,2014,Rowena has a basis in her Rail stock of $40,000.
a.What are the tax consequences to Rowena of the distribution?
b.What will be Rail Corporation's balance in its accumulated E & P account as of January 1,2015?


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A personality dimension that contrasts tendencies toward sociability, enthusiastic activities versus reflection, and quiet activities.

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