Business, 15.07.2020 04:01 chambless1828

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. Brown 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 cash to Larry on July 1 and $150,000 cash to Ed on December 30. If an amount is zero, enter "o"
a. How will Larry and Ed be taxed on the distributions?
Larry will have the following:
Dividend income:
Return of capital:
Capital gain:
Ed will have the following:
Dividend income: $
Return of capital:
Capital gain:$
b. How much gain will Larry recognize on the sale of his stock to Ed?
Larry recognizes a capital gain of $ on the sale of the stock

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Larry, the sole shareholder of Brown Corporation, sold his Brown stock to Ed on July 30 for $270,000...

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