At the beginning of the year, Ted Beneke owns 60% and Mazie Wilker owns 40% of Shady Corporation, a calendar year taxpayer. Shady makes a $207,600 distribution to Ted on April 1 and a $138,400 distribution to Mazie on May 1. On July 1, Ted sells 2/3 of his shares to Skylar White for $550,000. Shady makes another distribution of $346,000 on September 1 ($69,200 to Ted Beneke, $138,400 each to Mazie Wilker & Skylar White). Shady's current E & P is $243,000 and its accumulated E & P is $336,000.

REQUIRED: What are the tax consequences of these distributions to Ted Beneke, Mazie Wilker, and Skylar White? Assume each individual has adequate stock basis to cover distributions in excess of E&P, so calculate total taxable dividend and total non-taxable return of capital to each person.

(SHOW WORK)

Ted taxable dividend:_________

Ted ROC:__________

Mazie taxable dividend:___________

Mazie ROC:____________

Skylar taxable dividend:__________

Skylar ROC:__________

(***Return of capital is (ROC)****)