Carson Corporation is a calendar year taxpayer. Jane owns all of its stock. Her basis for the stock is $8,000. On April 1 of the current (non-leap) year Carson distributes $54,000 to Jane.

Requirement

Determine the tax consequences of the cash distribution in each of the following independent situations:

a. Current E&P of $10,000;accumulated E&P of $28,000. b. Current E&P of $38,000; accumulated E&P of $(16,000). c. Current E&P of $(73,000); accumulated E&P of $50,000. d. Current E&P of $(30,000); accumulated E&P of $(15,000).

(Round to the nearest whole dollar. For zero amounts, make sure to enter "0" in the appropriate cell. Use parentheses or a minus sign for losses and E&P deficits.)

a. Distribution Dividend income Remaining distribution Return of Capital Capital gain (loss) Carryforward Accumulated E and P

b.

c.

d.