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At the beginning of the current year, both Austin and Briana own 5 0 % of Apple Corporation. In July, Austin sold her stock to

At the beginning of the current year, both Austin and Briana own 50% of Apple Corporation. In July, Austin sold her stock to Tia for $110,000. At the beginning of the year, Apple Corporation had accumulated E & P of $200,000 and its current E & P is $250,000(prior to any distributions). Apple distributed $260,000 on March 1($130,000 to Austin and
$130,000 to Briana) and distributed another $260,000 on October 1($130,000 to Tia and $130,000 to Briana). What are the tax implications of the $130,000 distribution to Tia?

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