Problem regarding excess distribution method


Question: Last year, Koko purchased < 1% of the stock of PCorp, a foreign corporation that meets the definition of a PFIC. Pcorp paid Koko a $1,000 dividend last year and a $20,000 dividend in the current year. This year, how much of the $20,000 dividend will be considered an "excess distribution" under the Excess Distribution Method? Group of answer choices $19,000 $20,000 $0 $18,750

 

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Accounting Basics: Problem regarding excess distribution method
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