ACCT 540 Chapter 18 Distributions Assignment In each of the following situations complete the blanks Distribution (cash) S H Basis in Stock Corporate E&P Dividend Retum of Capital Capital Gain 100,000 100,000 640,000 60,000 20,000 00,000 20,000 00,000 20.000 00,000 XYZ Corporation has one shareholder. The shareholder's tax basis in his shares is S100,000. Corporate E&P BEFORE the effects of any distribution is $100,000. The corporation distributes the following property in INDEPENDENT situations Explain the tax effect to the corporation and to the sole shareholder. First, the corporation distributes land with a FMV of $200,000 and a tax basis to the corporation of S100,000. Second, the corporation distributes land with a FMV of S100,000 and a tax basis to the corporation of $200,000