At the beginning of the current (non-leap) year, Harris owns all of Pearl Corporation's outstanding stock. His basis in the stock is $75,000. On July 1, he sells all his stock to Mozzie for $135,000. During the year, Pearl, a calendar yeartaxpayer, makes two cash distributions: $54,000 on March 1 to Harris and $95,000 on September 1 to Mozzie.

Consider the following independent situations:

All parts shown below. Numbers from different problems. Jason should be Mozzie.

a. b. c. Current E&P of $32,000; accumulated E&P of $38,000. Current E&P of $98,000; accumulated E&P (deficit) of $(46,000). Current E&P (deficit) of $(34,000); accumulated E&P of $110,000 a. b. c. Current E&P of $32,000; accumulated E&P of $38,000. Current E&P of $98,000; accumulated E&P (deficit) of $(46,000). Current E&P (deficit) of $(34,000); accumulated E&P of $110,000