4. EOC 21. LO.1, 3 Black Corporation and Tom each own 50% of Tan Corporation's common stock. On January 1, Tan holds a deficit in accumulated E \& P of $200,000. Its current E &P is $90,000. During the year, Tan makes cash distributions of $40,000 each to Black and Tom. 1. How are the two shareholders taxed on the distribution? 2. What is Tan's accumulated E \& P at the end of the year