Ann Corp has current earnings and profits (CEP) of 40,000 and accumulated earnings and profits(AEP) of 60,000. Sole shareholder Betty owns all 1,000 shares with an adjusted basis of 10,000. Each of those questions is independent of the others.

A) If Ann Corp distributes 113,000 in cash to Betty and continues to operate (in other words its not a liquidating distribution) what are the tax consequences to Betty?

B) If CEP was 50,000 and AEP was a deficit of (60,000) and the cash distribution on July 1 (assume this is 50% of the year) was 35,000 what are the tax consequences to Betty?

C) If CEP was a deficit of ($40,000) and AEP was 20,000 and 3,000 cash was distributed to Betty on September 30 (assume this is 75% of the year) what are the tax consequences to Betty?

D) If the CEP and AEP are each $250,000 and Ann distributes a piece of land with a fair market value (FMV) of 40,000 and an adjusted basis of 40,000, what is the amount if any of Bettys income and what is the adjusted basis and holding period in the land?

E) Does the answer change, and if so how, if the land in the previous question was subject to a liability of $10,000.

F) If CEP and AEP are $400,000 each and Ann distributes land with a FMV of $50,000 and an adjusted basis of 30,000. What are the tax consequences to An Corp of the distribution?