Chapter 18 Distributions Assignment In each of the following situations complete the blanks Distribution (cash) S/H Basis in Corporate E&P Dividen Return of Capital Capital Gain 100,000 100,000 600 600,000 100 Stock 20,000 500,000 20,000 500,000 800 800 800 500,000 20,000 500,000 20,000 500 20 XYZ Corporation has one shareholder. The shareholder's tax basis in his shares is $100,000. Corporate E&P BEFORE the effects of any distribution is $100,000. The corporation distributes the following property in INDEPENDENT situations. Explain the tax effect to the corporation and to the sole shareholder First, the corporation distributes land with a FMV of $200,000 and a tax basis to the corporation of $100,000 Second, the corporation distributes land with a FMV of $100,000 and a tax basis to the corporation of $200,000