In the Current Year,Verdigris Corporation (With E & P of $250,000)made

question 3

Multiple Choice

In the current year,Verdigris Corporation (with E & P of $250,000) made the following property distributions to its shareholders (all corporations) :

Verdigris Corporation is not a member of a controlled group.As a result of the distribution:

• A)The shareholders have dividend income of $100,000.
• B)The shareholders have dividend income of $130,000.
• C)Verdigris has a gain of $15,000 and a loss of $15,000,both of which it must recognize.
• D)Verdigris has no recognized gain or loss.
• E)None of the above.

---

Definitions:

LIFO

"Last In, First Out", an inventory costing method where the most recently produced or acquired items are recorded as sold first.

FIFO

An inventory valuation method where the first items placed into inventory are the first ones sold; stands for First-In, First-Out.

Inventory Costing

The method used to assign costs to inventory, affecting the cost of goods sold and ending inventory valuations.

Ending Inventory

The total value of all inventory that a company has in stock at the end of an accounting period.