Common stock of Green Corporation

Research Problem 2. Tammy Olsen has owned 100% of the common stock of Green Corporation (basis of $75,000) since the corporation’s formation in 2004. In 2010, when Green had E & P of $320,000, the corporation distributed to Tammy a nontaxable dividend of 500shares of preferred stock (value of $100,000 on date of distribution) on her common stock interest (value of $400,000 on date of distribution). In 2011, Tammy donated the 500 shares of preferred stock to her favorite charity, State University. Tammy deducted $100,000, thefair market value of the stock on the date of the gift, as a charitable contribution on her2011 income tax return. Tammy’s adjusted gross income for 2011 was $420,000. Six months Hoffman, William H.; Raabe, William A.; Smith, James E.; Maloney, David M.; Young, James C. (2013-04-10). South-Western Federal Taxation 2014: Corporations, Partnerships, Estates and Trusts (Page 6-40). Cengage Textbook. Kindle Edition. ?Hoffman, William H.; Raabe, William A.; Smith, James E.; Maloney, David M.; Young, James C. (2013-04-10). South-Western Federal Taxation 2014: Corporations, Partnerships, Estates and Trusts (Page 6-41). Cengage Textbook. Kindle Edition.