and accumulated E&P at January 1 of this year of $60,000. During this year, the corporation made the following distributions to its shareholders: 03/31: Distributed $100 per share to each shareholder ($100,000 in total). 06/30: Distributed $100 per share to each shareholder ($100,000 in total). 09/30: Distributed $100 per share to each shareholder ($100,000 in total). 12/31: Redeemed all of Vinnie's shares for $250,000 in cash. Required: a) Determine the tax status of each distribution made this year. b) Compute the corporation's accumulated E&P at January 1 of next year. c) Joe is considering retirement and would like to have the corporation redeem all of his shares for $100,000 plus a 10-year note with a fair market value of $300,000. What must Joe do or consider if he wants to ensure that the redemption will be treated as an exchange? Could Joe still act as a consultant to the company? d) Thriller Corporation must pay attorney fees of $5,000 to facilitate the stock redemptions. Is this fee deductible? 16 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27