Question

3. This year, Company J reported current earnings and profits of $200,000 and accumulated earnings and profits of $200,000. It distributed $250,000 to its only shareholder, Sam on the last day of the year. Sam’s tax basis in the company is $100,000.

How much of the $250,000 distribution will be treated as dividend to Sam?

a. $250,000
b. $200,000
c. $100,000
d. None of the above

Answer 1

Answer:

c.$100,000 because when we interchange it

Answer 2

Answer:

heymate here's your answer is option c

100,000

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lf my answer please mark as branlist

#your friend

@Amyra