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[SOLVED] Dividend recognize

Author: Client Uploads
May 18th, 2022

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[SOLVED] Dividend recognize
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Corporation X has 100,000 shares outstanding. It gets following taxable income( equal to e&p) in its first three years of operations:

Year 1:(100,000) year 2 :0 year 3:$50,000 A owns 1000 shares of corporation X with basis of $1000

If corporation X distribute $0.6 per share at the end of Year 3,how much dividend income will A recognize?

If corporation X distribute $0.6 per share at the end of Year 3,and A sells her stock,right after the distribution,for$1200 how much gain or loss will A recognize?

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