Bonus Inc. was incorporated on January 1, 2015. It's taxable income each year since incorporation is as follows:

2019 - 100,000

2020 - 100,000

2021 - 1,000,000

2022 - 1,000,000.

Bonus Inc. had two equal shareholders, Mr. Student and Miss Masters, who are unrelated. Mr. Student's basis in the corporation at January 1, 2022 was $100,000, and Miss Masters' basis was $500,000. Mr. Student started the corporation in 2019, and Miss Masters became a shareholder on January 1, 2022. During 2022, Bonus Inc. made the following distributions, which were divided equally to the two shareholders:

June 1, 2022 - 500,000

September 1, 2022 - 1,000,000

December 1, 2022 - 1,000,000.

A. Calculate Bonus Inc's accumulated E&P at January 1, 2022.

B. Calculate the 2022 current E&P.

C. What are the tax consequences to Mr. Student as a result of the June 1 distribution.

D. What are the tax consequences to Mr. Student as a result of the September 1 distribution.

E. What are the tax consequences to Mr. Student as a result of the December 1 distribution.

F. What are the tax consequences to Miss Masters as a result of the December 1 distribution.

G. What are Bonus Inc.'s accumulated earnings and profits as at January 1, 2023