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 negative accumulated E&P of ($10,000) and current E&P of $50,000. It distributes a $30,000 cash dividend to Jack and a $30,000 cash dividend to Jill at end of year. How much of the dividend distribution is taxable to Jack and Jill? What is the effect to UTHs current E&P?

QUESTION #5 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 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. How much of the dividend distribution is taxable to Jack and Jill? What is the effect to UTHs current E&P? 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 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. What is the amount of the property dividend to Jack and Jill? How much of the property dividend is taxable?