At the Beginning of the Current Year, Doug and Amelia

question 104

Multiple Choice

At the beginning of the current year, Doug and Amelia each own 50% of Amaryllis Corporation (a calendar year taxpayer) . In July, Doug sold his stock to Kevin for $140,000. At the beginning of the year, Amaryllis Corporation had accumulated E & P of $240,000 and its current E & P is $280,000 (prior to any distributions) . Amaryllis distributed $300,000 on February 15 ($150,000 to Doug and $150,000 to Amelia) and distributed another $300,000 on November 1 ($150,000 to Kevin and $150,000 to Amelia) . Kevin has dividend income of:

• A) $150,000.
• B) $140,000.
• C) $110,000.
• D) $70,000.
• E) None of the above.