5 years after its formation, Up the Hill Corporation wants to pay dividends to its shareholders Jack and Jill. On 1/1 Year 6 , it has accumulated E\&P of $100,000, and on 12/31 it has current E\&P of $50,000. It distributes a $20,000 cash dividend at end of year to Jack and Jill for a total of $40,000. A. How much of the dividend distribution is taxable to Jack and Jill? B. What is the effect to UTH's current and accumulated E\&P? C. What is accumulated E\&P on 1/1, Year 7 ? QUESTION \#2 5 years after its formation, Up the Hill Corporation wants to pay dividends to its shareholders Jack and Jill. On 1/1 Year 6 , it has accumulated E\&P of $80,000 and on 12/13, it has current E\&P of $40,000. It distributes a $30,000 cash dividend at end of year to Jack and Jill for a total of $60,000. A. How much of the dividend distribution is taxable to Jack and Jill? B. What is the effect to UTH's current and accumulated E\&P? C. What is accumulated E\&P on 1/1, Year 7