Ask Question
29 October, 21:18

Bow, Inc., an S corp, has three equal shareholders. For the year ended Dec 31 2009, Bow had taxable income and current earnings and profits of 300K. Bow made distributions totaling 120K during 2009. For 2009, what amount from Bow should be included in each S/H's gross income? a. 140Kb. 100Kc. 60Kd. 40K

+2
Answers (1)
  1. 30 October, 00:12
    0
    option (b) 100K

    Explanation:

    Data provided in the question:

    Total number of share holders = 3

    Taxable income and current earnings and profits = 300K

    Distributions made during 2009 = 120K

    Now,

    Since the shareholders are equal shareholders in Bow Inc,

    Therefore,

    The amount from Bow that should be included in each S/H's gross income will be

    = (Taxable income and current earnings and profits) : (Number of share holders)

    = 300K : 3

    = 100K

    Hence,

    the answer is option (b) 100K
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Bow, Inc., an S corp, has three equal shareholders. For the year ended Dec 31 2009, Bow had taxable income and current earnings and profits ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers