Black Corporation and Tom each own $50\%$ of Tan Corporation$$s common stock. On January $1,2024$ Tan has a deficit in accumulated E & P of $$200,000.$ Its current E & P is $$90,000.$ During the year, Tan makes cash distributions of $$40,000$ each to Black and Tom.

A How are the two shareholders taxed on the distribution?

B What is Tan Corporation$$s accumulated E & P at the end of the year?