Auburn Corporation is a calendar year taxpayer. Tom owns one-third (100 shares) of Auburn stock. His basis in the stock is $12,000. Pam owns two-thirds (200 shares) of Auburn stock. Her basis in the stock is $45,000. On June 10 of the current year, Auburn distributes $25,000 to Tom and $65,000 to Pam.

Determine the tax consequences of the cash distributions to Tom and Pam if current E&P is $32,000 and accumulated E&P is $31,000.

Please be sure to calculate the following for Tom and Pam:

Distribution
Dividend Income
Remaining Distribution
Return of Capital
Capital gain (loss)
Remaining stock basis