Chapter 4 Question 2

Brother's Two Carporation is a calendar year taxpayer. Susan owns all of its stock. Her basis for the slock is $5,000. On April t of the current (non-leap) yoar Brother's Two distributes $60.000 to Susan a. Current eamings and protits (E8P) of \$24,000; accumulated E8P of \$26,000. (Do not round intormedary calculations. Onty round the anount yau inpot in the col is the nearest dollar Complete all input fiedds. For zero amounts, enter a 0 . Use parenthesos or a minus sign for losses and EsP deficts : Requirement Determine the tax consequences of the cash distribution in each of the following independent situations: a. Current E\&P of $24,000; accumulated E\&P of $26,000. b. Current E\&P of $35,000; accumulated E\&P deficit of $(32,000). c. Current E\&P deficit of $(72,000); accumulated E\&P of $50,000. d. Current E\&P deficit of $(30,000); accumulated E\&P deficit of $(15,000)