Assumption: A owns half the common stock of X with an adjusted basis of $$40,$ and Y owns the other half of the X common stock with an adjusted basis of $$100.$ X$$s current E&P from current$-$year income and expenses$/$losses is $$94,$ and X has no accumulated E&P$.$ X uses the accrual method, all taxpayers are on the calendar year, and $1059$ does not apply. Assume that the corporate tax rate is $34$ percent. $[$Hint: First derive an "interim" E&P based on the events described in each problem, but not including the downward adjustment for the distribution itself.$]$

X distributes, in kind, its long$-$held AT&T stock with an adjusted basis of $$40$ and FMV of $$100$ to Y; X also distributes other long$-$held AT&T shares With an adjusted basis of $$60$ and FMV of $$100$ to A$.$

What are the results to A$,$ Y$,$ and X$?$

Alternative: The basis of the stock distributed to A is $$120.$