Atlantic Corporation, a calendar- year taxpayer, has $120,000 of accumulated E&P deficit as of January 1. Atlantic's current E&P is $40,000. The corporation makes a $50,000 distribution to its shareholders. Shareholders have stock basis of $60,000. What is the amount of Atlantic's E&P deficit at the end of the year?

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The Answer of Atlantic Corporation, a calendar- year taxpayer, has $120,000 of accumulated E&P deficit as of January 1. Atlantic's current E&P is $40,000. The corporation makes a $50,000 distribution to its shareholders. Shareholders have stock basis of $60,000. What is the amount of Atlantic's E&P deficit at the end of the year?

Atlantic Corporation, a Calendar- Year Taxpayer, Has $120,000 of Accumulated