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:

a.	Current E&P of $32,000; accumulated E&P of $38,000.
b.	Current E&P of $98,000; accumulated E&P (deficit) of $(46,000).
c.	Current E&P (deficit) of $(34,000); accumulated E&P of $110,000. Answer given, just show work. Unsure how return of capital is calculated.

Begin by completing the table for the distributions. (Complete all answer boxes. For zero amounts, make sure to enter" amount you input in the cell to the nearest dollar.) in the appropriate cell.Use a 365-day year for computations. Do not round intermediary calculations. Only round the Current Retum Situation Individual Date E and P E and P of capital 54,000$ ,597 S 95,000 149,000 32, 54,000 95,000 149,000 $98,000 S 54,000 95,000 149,000$ 38,000 S 4,403 74,597 79,000 18,483 32,517 51,000 Mar 1 S Sep 1 49,597 S 20,403 70,000 S 35,517 S 62,483 98,000 S 54,000 S Harris 20,403 Mozzie 38,000 Mar 1S Sep 1 35,517 S 62,483 Harris 0 S 0 S S 0 S 54,000 $ 33,364 87,364 S Harris Mar 1 61,636 Sep 1 0 S 87,364S 61,636 Begin by completing the table for the distributions. (Complete all answer boxes. For zero amounts, make sure to enter" amount you input in the cell to the nearest dollar.) in the appropriate cell.Use a 365-day year for computations. Do not round intermediary calculations. Only round the Current Retum Situation Individual Date E and P E and P of capital 54,000$ ,597 S 95,000 149,000 32, 54,000 95,000 149,000 $98,000 S 54,000 95,000 149,000$ 38,000 S 4,403 74,597 79,000 18,483 32,517 51,000 Mar 1 S Sep 1 49,597 S 20,403 70,000 S 35,517 S 62,483 98,000 S 54,000 S Harris 20,403 Mozzie 38,000 Mar 1S Sep 1 35,517 S 62,483 Harris 0 S 0 S S 0 S 54,000 $ 33,364 87,364 S Harris Mar 1 61,636 Sep 1 0 S 87,364S 61,636