Question 1)
ISH AB = $40
ISH % ownership = 50%
CSH AB = $100
CSH % ownership = 50%
CEP= $0
AEP = 100
Dates of Distributions:
4/1/10, 12/1/10
On April 2, 2010 (one-fourth of the way through the year), D Corp makes a distribution of $100 to Shareholders. A $100 distribution is declared on 12/1/2010, payable on 12/31/2010 to SHs of record on 12/15/2010. D Corp mails a $100 check to CSH and a $100 check to ISH on 12/31/2010. The checks are received by CSH and ISH on 1/3/2011.
Now suppose D Corp's Acc' E&P as of 12/31/2010 was $100 and its current E&P in 2006 is $0. Calculate the allocation of distributions.
Question 2)
ISH AB = $40
ISH % ownership = 50%
CSH AB = $100
CSH % ownership = 50%
CEP= $(120) deficit
AEP = 100
Dates of Distributions: 4/1/10, 12/1/10
On April 2, 2010 (one-fourth of the way through the year), D Corp makes a distribution of $100 to Shareholders. A $100 distribution is declared on 12/1/2010, payable on 12/31/2010 to SHs of record on 12/15/2010. D Corp mails a $100 check to CSH and a $100 check to ISH on 12/31/2010. The checks are received by CSH and ISH on 1/3/2011.
Now suppose: suppose T Corp's Acc' E&P as of 12/31/2010 was $100 and T Corp has C E&P deficit of ($120). Calculate the allocation of distributions.