At the beginning of the current year, Cole Corporation has $20,000 of accumulated E&P. Cole's current E&P is $30,000. Bob is the sole shareholder in Cole Corporation. He purchased his stock five years ago and his stock basis is $47,500. On March 1, Cole distributes $20,000 in cash to Bob. On July 1, Cole distributes an additional $24,000 in cash to Bob. On August 1, Bob sells all of his Cole stock to Lynn for $50,000.On October 1, Cole distributes $36,000 in cash to Lynn.

a) What is the amount and character of income that Bob must recognize from the cash distributions?

b) What is the amount and character of income that Lynn must recognize from the cash distributions?

c) What is Lynn's ending stock basis?

d) What is the amount and character of income that Bob must recognize from the sale of his stock