Determine the Amount of Taxable Dividend,return of Capital,and Capital Gain

question 8

Essay

Determine the amount of taxable dividend,return of capital,and capital gain in each of the following independent cases.
a.Corporate earnings and profits of $100,000;stockholder basis in stock of $60,000;distribution of $20,000.
b.Corporate earnings and profits of $25,000;stockholder basis in stock of $40,000;distribution of $70,000.
c.Corporate earnings and profits of $300,000;stockholder basis in stock of $450,000;distribution of $350,000.

---

Definitions:

Compelling and Useful

Characteristics of information or resources that are both persuasive and beneficial to the user.

Realistic

Pertaining to the representation of objects, situations, or actions in a way that is true to life, or having an acceptance of the situation as it is.

Transtheoretical Model

A theoretical model of behavior change that assesses an individual's readiness to act on a new healthier behavior, and provides strategies, or processes of change to guide the individual.

Sober

The state of not being under the influence of alcohol or drugs.