Larry, the sole shareholder of Brown Corporation, sold his Brown stock to Ed on July 30 for $270,000. Larry's basis in the stock was $200,000 at the beginning of the year. rown had accumulated E & P of $120,000 on January 1 and has current E & P of $240,000. During the year, Brown made the following distributions: $450,000 of cash to Larry on July 1 and $150,000 of cash to Ed on December 30.How much of the current E & P is allocated to Larry's distribution?

$180,000

Explanation:

Given that

Current E & P = $240,000

Distribution to Larry = $450,000

The computation of current E & P is allocated to Larry's distribution is shown below:-

Current E & P is allocated to Larry's distribution = (Current E & P × Distribution to Larry) ÷ Total distribution

= ($240,000 × $450,000) ÷ $600,000

= $108,000,000  ÷ $600,000

= $180,000

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%