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An earnings and profits (E&P) study for Hardy Corp., a calendar year C corporation was performed. The results of the study indicated that Hardy
An earnings and profits (E&P) study for Hardy Corp., a calendar year C corporation was performed. The results of the study indicated that Hardy had accumulated E&P of $50,000 as of January 1st, 2019, and current E&P of $450,000 for 2019. Hardy made a cash distribution to its three shareholders on December 31, 2019 of $750,000. The distribution was pro-rata (according to ownership percentage). Steve owned 50% of Hardy on December 31st, Laura owned 30% and Harry owned 20%. In addition, Steve's basis in his Hardy stock as of December 31st was $100,000, Laura's basis was $50,000 and Harry's basis was $25,000. For each of the items below, enter the requested amount for each shareholder. Enter all amounts as positive, whole values. If a response is zero, enter a zero (0). Steve Laura Harry Dividend income from current E&P Dividend income 2 from accumulated E&P Nontaxable return 3 of capital 4 Capital gain income
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