Determine the tax treatment of distribution


Problem:

MikeCO made the following distributions during the year:

*5/1/x1 $60,000
*9/1/x1 40,000

Determined the tax treatment of each distribution under each of the following independent circumstances:

Accum E&P Curr E&P

a) $10,000 $50,000

b) (70,000) 50,000

c) 95,000 (18,250)

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Accounting Basics: Determine the tax treatment of distribution
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