1. XYZ CORP, ANS CORP WITH ONE SHAREHOLDER, SAM: $5,000 30,000 YEAR 1: TAX-EXEMPT INCOME ORDINARY INCOME YEAR 2: ORDINARY LOSS CASH DISTRIBUTIONS ($40,000) 15,000 BEGINNING OF YEAR 1: XYZ HAS AAA AND OAA OF $O, AND ACCUMULATED E&P OF $6,000. SAM HAS STOCK BASIS OF $10,000 AND DEBT BASIS OF $12,000 (ON LOAN TO XYZ). QUESTIONS: A. WHAT IS SAM'S REPORTABLE ITEMS FROM XYZ FOR YEARS 1 AND 2. (FILL-IN) Items reported by the shareholder SAM: Year 1: Ordinary income Tax-exempt income Year 2: Ordinary loss allowed B. WHAT ARE BALANCES IN XYZ ACCOUNTS AND SAM'S STOCK AND DEBT BASES AT END OF EACH YEAR. (use accounts discussed rows/columns - balances) C. WHAT IF DISTRIBUTION IN YEAR 2 IS $35,000 INSTEAD OF $15,000? (FILL-IN) Items reported by the shareholder: Year 1: Year 2: Dividend income Ordinary loss allowed Remaining loss carries over (and - use accounts discussed rows/columns - balances)