Video: REG – Non-Liquidating Distributions

25. Oct, 2009 9 Comments

CPA Exam Review instructor Phil Yaeger of Yaeger CPA Review has done a special teaching segment for another71.com readers over non-liquidating distributions for Corporate Taxation. People studying for the Regulation section of the CPA Exam will want to pay special attention to this and know how to work these problems.

Here is the scenario for the video segment:

Corporate Taxation – Non-liquidating distrubtions

Dahl Corp. was organized and commenced operations in 1998. At December 31, 2008, Dahl had accumulated earnings and profits of $9,000 before dividend declaration and distribution. On December 31, 2008, Dahl distributed cash of $9,000 and a vacant parcel of land to Green, Dahl’s only stockholder.

At the date of distribution, the land had a basis of $5,000 and a fair market value of $40,000. What was Green’s taxable dividend income in 2008 from these distributions?

a. $9,000
b. $14,000
c. $44,000
d. $49,000

For best results, I would work the question yourself and then watch the video. This was my strategy while going through the Yaeger REG HomeStudy and I found it highly effective.

(Phil mentions a PDF in the video, but I have copied the question on the PDF to this post)


If you like these videos, ratings are appreciated. – Jeff@another71.com

9 Responses to “Video: REG – Non-Liquidating Distributions”

  1. Suzanne Doyle 26. Oct, 2009 at 1:46 pm

    Thank you! These ARE helpful.

  2. Allyson 28. Oct, 2009 at 7:32 pm

    Thank you very helpful. I just took REG a while ago and studied Becker CPA study guide and wish they had online tools like this to help me study. I didn’t feel very prepared studying Becker for this section.

  3. Ed 29. Oct, 2009 at 6:28 am

    I found this video by Phil very helpful. I am preparing for REG right now. His explanation was clear to the point. This helped me get a good handle on a non-liquating distribution to a shareholder. The 3-step rule was good.

  4. Priscilla 29. Oct, 2009 at 7:51 am

    I think this was great, I watch the video on Monday and took my exam on Wednesday and this question helped a great deal in the real exam. Great Job!

  5. Ryan 29. Oct, 2009 at 6:38 pm

    Great topic to cover! Please continue!

  6. Chris 30. Oct, 2009 at 2:38 am

    Thank you so much for your video segments. I’m preparing for Regulation now and Mr. Yaeger’s step-by-step explanations help me so much in tackling the most confusing topics. Please continue with tax problems.

  7. sickostudyin 31. Oct, 2009 at 3:48 pm

    The video was very helpful. Please continue posting videos on corporate taxation. That is the area that I have been struggling with the most.

  8. Matt 10. Nov, 2009 at 9:59 am

    Great stuff!!

    I have the Yaeger home study and still find these to be invaluable.

  9. jmsmith13 19. Nov, 2009 at 4:40 am

    Excellent demonstration