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

u = 30

continuing your method

= +

subtract from both sides

= - thus

= -

= ⇒ u = 30

anyone below or above ambitious can tell you. so crowns mean brainliest. getting brainliest means your answer needs a good explanation and the person asking the question can understand your answer easily. so say there's a multiple choice question. you don't just want to say your answer is a, hope it . provide evidence and reasoning so that they know that that is the correct answer. a good explanation should have evidence, good reasoning, and your opinion on why you picked that. you don't want to look up their question on the internet and see if you can answer it. pick questions that you 100% know the answer to, so than that way you can provide a better explanation.

best of luck,

the divergent