Payment Corporation has accumulated E&P of $19,000 and current E&P of $28,000. During the year, the corporation makes the following distributions to its sole shareholder: $$\begin{array} { | l | c | }
\hline { \text { Date } } & \begin{array} { c }
\text { Amount } \
\text { Distributed }
\end{array} \
\hline \text { April 1 } & \$ 20,000 \
\text { June 1 } & 20,000 \
\text { August 1 } & 15,000 \
\text { November 1 } & 5,000 \
\hline
\end{array}$$ The sole shareholder's basis in her stock is $45,000. What are the tax consequences of the June 1 distribution?

Question

Payment Corporation has accumulated E&P of $19,000 and current E&P of $28,000. During the year, the corporation makes the following distributions to its sole shareholder: $$\begin{array} { | l | c | } 
\hline { \text { Date } } & \begin{array} { c } 
\text { Amount } \
\text { Distributed }
\end{array} \
\hline \text { April 1 } & \$ 20,000 \
\text { June 1 } & 20,000 \
\text { August 1 } & 15,000 \
\text { November 1 } & 5,000 \
\hline
\end{array}$$ The sole shareholder's basis in her stock is $45,000. What are the tax consequences of the June 1 distribution?

Quizplus · Accepted Answer

The Answer of Payment Corporation has accumulated E&P of $19,000 and current E&P of $28,000. During the year, the corporation makes the following distributions to its sole shareholder: $$\begin{array} { | l | c | } 
\hline { \text { Date } } & \begin{array} { c } 
\text { Amount } \
\text { Distributed }
\end{array} \
\hline \text { April 1 } & \$ 20,000 \
\text { June 1 } & 20,000 \
\text { August 1 } & 15,000 \
\text { November 1 } & 5,000 \
\hline
\end{array}$$ The sole shareholder's basis in her stock is $45,000. What are the tax consequences of the June 1 distribution?

Payment Corporation Has Accumulated E&P of $19,000 and Current E&P