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 negative current E&P of ($50,000). It distributes a $50,000 cash dividend to Jack and a $50,000 cash dividend to Jill at end of year. 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 \#6 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 $50,000, and on 12/31 it has current E&P of $50,000. It distributes a property dividend of FMV $50,000;AB$20,000 to Jack and Jill at end of year. A. What is the amount of the property dividend to Jack and Jill? B. How much of the property dividend is taxable? C. What is Jack and Jill's basis in the property? D. What is the effect to UTH's current and accumulated E\&P? E. What is accumulated E\&P on 1/1, Year 7