assume the tax rate for all c-corporations is 21%

Question 19 2.5 pts On June 30, 20X1, Butler Corporation purchases 1,000 of its shares from its shareholders for $75,000 cash in a transaction that is treated as a Sec. 301 distribution. Immediately before this transaction, Butler had 5.000 shares outstanding. Butler's current earnings and profits (E&P) is zero, and its accumulated E&P at the beginning of the year is $260,000. What is Butler's accumulated E&P at the end of the year? $185,000 $208,000 $222.500 $92,500 Question 20 2.5 pts Craig owns all 10,000 shares of Blair Corporation's common stock (worth $420,000). His basis for the shares is $300,000. On December 31, 20X1. Blair distributes 2,000 shares of its preferred stock (worth $80,000) to Craig. The stock dividend qualifies as nontaxable. What is Craig's basis for the 10,000 common shares immediately after this transaction? $300,000 O $252,000 $220,000 $250,000