[SOLVED] Dividend recognize
Can you help me understand this Accounting question?
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?