Stacey and Andrew Each Own One-Half of the Stock in Parakeet

question 53

Multiple Choice

Stacey and Andrew each own one-half of the stock in Parakeet Corporation,a calendar year taxpayer.Cash distributions from Parakeet are: $350,000 to Stacey on April 1 and $150,000 to Andrew on May 1.If Parakeet's current E & P is $60,000,how much is allocated to Andrew's distribution?

• A)$5,000
• B)$10,000
• C)$18,000
• D)$30,000
• E)None of the above

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