1. Total BrandCompany reports positive current E&P of $500,000 in year 1 and positive accumulated E&P at the beginning of the year of $400,000. Total Brand Company distributed $650,000 to its sole shareholder, Tim McDougalon December 31, year 1. McDougals tax basis in his Total Brand stock is $120,000. How much of the $600,000 distribution is treated as a dividend to Timand what is his basis in Total Brand stock after the distribution?

2.DallasCompany reports negative current E&P of $(400,000) and negative accumulated E&P of $(800,000).Dallas distributed $90,000 to its sole shareholder, Mandy Moon, on December 31, year 1. Moon's tax basis in her Dallas stock is $40,000. What is the (a) tax treatment of the distribution to Moonand what is (b) her tax basis in Dallas stock after the distribution? (c) Set forth your explanation and calculation.

3. Determine the amount of taxable dividend, return of capital, and capital gain in each of the following independent cases

a. Corporate earnings and profits of $100,000; stockholder basis in stock of $60,000; distribution of $30,000. b. Corporate earnings and profits of $30,000; stockholder basis in stock of $40,000; distribution of $70,000. c. Corporate earnings and profits of $300,000; stockholder basis in stock of $450,000; distribution of $400,000.

4. SunsetCorporation reported current earnings and profits for year 1 of $500,000. During the year, the company made a distribution of land to its sole shareholder, TonyJohnson. The land's fair market value was $185,000 and its tax and E&P basis to Sunsetwas $100,000. Tonyassumed a mortgage attached to the land of $20,000.

a) What amount of dividend income does Tonyreport as a result of the distribution and

(b) What is Tony's income tax basis in the land received from Sunset?