7. Tango Corporation has a December 31 year-end. Tango had $50,000 in accumulated E & P at the beginning of its 2016 fiscal year (September 1, 2015) and during the year, it incurred a $75,000 operating loss. It also distributed $75,000 to its sole shareholder, Cass, on November 30, 2015. If Cass is a calendar year taxpayer who purchased the stock for 20,000 in 2000.

a. How should Tango treat the distribution

b. How should Cass treat the distribution when she files her 2015 income tax return (assuming the return is filed by April 15, 2016)?

c. What is Cass remaining basis in the Corporation stock