Jerry Is the Sole Shareholder of Bluejay Corporation,a Calendar Year

question 111

Multiple Choice

Jerry is the sole shareholder of Bluejay Corporation,a calendar year C corporation.As of January 1,2012,Bluejay has a deficit of $50,000 in accumulated E & P.During 2012,it has current E & P of $300,000 and distributes a cash dividend of $400,000 to its shareholder.As of January 1,2012,Jerry's basis in the Bluejay stock is $75,000.One result of these transactions is:

• A) Dividend income to Jerry of $250,000.
• B) Dividend income to Jerry of $300,000.
• C) Dividend income to Jerry of $400,000.
• D) As of January 1, 2013, Bluejay Corporation has a deficit in accumulated earnings and profits of $150,000.
• E) None of the above.

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Definitions:

Presentation

The act of offering or showing a product, idea, or business proposal to an audience or client.

Nonverbal Cues

Forms of communication without words, such as body language, gestures, and facial expressions, that convey meaning or emotion.

Prospective Buyer

An individual or entity showing interest in purchasing a product or service, but who has not yet made a purchase.

Interest Stage

A phase in the sales or marketing funnel where potential customers become aware of a product or service and begin to show curiosity or engagement.