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Mr. Gregory White, Master's Degree
Category: Essays
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Experience:  M.A., M.S. Education / Educational Administration
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### Customer Question

I am interested in the answers from a question already posted by PDTax. Is that possible?LESSON 6, PROBLEM #2
Allan owns all of the stock of CadyCo. The stock’s basis is \$100,000. CadyCo has a total of current and accumulated earnings and profits of \$50,000. CadyCo distributes \$200,000 cash to Allan “with respect to his stock” (i.e., as a state law “dividend”). How is the \$200,000 taxed? What is Allan’s stock basis after the distribution? Alternatively, CadyCo distributes to Allan his note to CadyCo for \$200,000 borrowed from CadyCo.LESSON 6, PROBLEM #3
Assumptions: The stock of ChadCo is owned equally by two shareholders: SecondCo (a corporation) and Arnold (an individual). ChadCo and SecondCo use the accrual method, Arnold uses the cash method. All use a calendar taxable year. Assume § 1059 does not apply. Use a 34 percent corporate tax rate in this problem. During the current year, ChadCo accrued income and expenses as follows:
Dividends on AT&T stock (consider § 243) 100,000
Interest on municipal bonds (§ 103) 100,000
Capital gain 100,000Total \$800,000Deductible § 162(a)(l) business expenses \$430,000
Noncapital expenses not deductible under § 162(e) 90,000
Capital losses (see § 1211(a)) 146,000
Total \$666,000Net \$134,000(1) On December 24 of the preceding year, SecondCo and Arnold incorporated ChadCo and capitalized ChadCo with cash of \$100,000 each. On December 31 of that preceding year, SecondCo and Arnold received distributions from ChadCo of \$5,000 each; ChadCo did not earn any income for that year. In addition, SecondCo and Arnold received distributions of \$5,000 each, in the current year.
Submitted: 7 months ago.
Category: Essays
Expert:  Donna Kakonge replied 7 months ago.

Dear Customer,

These are a lot of questions, however I can help you. I will make you an offer for a little more credit on top of what you have already paid to complete these questions. If you accept, I can have it done by Wednesday (no later). If you do not accept the offer we can negotiate.

Kindest regards,

Donna

Customer: replied 7 months ago.
PDTax has already answered these questions. Is there any way PDTax can work with me?
Expert:  Donna Kakonge replied 7 months ago.

Dear Customer,

I will opt out of this question so that PDTax can help you. Sorry if I interrupted your work with PDTax. Please bear in mind that I am opting out.

Kindest regards,

Donna

Customer: replied 7 months ago.
Ok Thank you
Expert:  PDtax replied 7 months ago.

Hi. PDtax here. Thanks for asking for me.

Customer: replied 7 months ago.
You had answer the same questions back in 2014. I was wondering if I could get the same answers. I struggling with some of the concepts.
Customer: replied 7 months ago.
PDtax will you be able to help?
Expert:  PDtax replied 7 months ago.

Sorry, I don't have a copy of the project from 2014.

Customer: replied 7 months ago.
You don't need it. I have posted all the information in my question.
Expert:  PDtax replied 7 months ago.