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.

---

Definitions:

Pneumonia

An infection that inflames the air sacs in one or both lungs, which can fill with fluid or pus, causing cough with phlegm, fever, chills, and difficulty breathing.

Shortness Of Breath

A subjective feeling of difficulty breathing or inadequate breath, medically known as dyspnea, which can be a symptom of various health conditions.

Auscultation

Method of physical examination; listening to the sounds produced by the body, usually with a stethoscope.

Dressing Change

The process of removing old wound coverings and applying new ones, typically performed to promote healing and prevent infection.