Corporation Y was formed on October 1, 20133 by 2 shareholders who each contributed $20,000 cash. Shareholder A is a corporation while shareholder B is an individual. Corporation Y has revenues in 2013 of $50,000 and salary expenses of $20,000. At the end of the 2013 tax year. Corporation Y receives a K-1 partnership in which it owns 50%. The K-1 reports municipal interest income of $10,000 and low income housing credits of $2,000. Corporation Y has an effective tax rate of 40% for all years and has no business activity in 2014. On January 1, 2014 Corporation Y distributes $8,000 (each) in cash to both shareholder A&B.

55. Shareholder Bs basis in Corporation Ys stock immediately after the distribution is:

a. $20,000 b. $12,000 c. $27,000 d. $24,000

56. Following the distribution, Corporation Y has accumulated earnings and profit of:

a. $30,000 b. $14,000 c. $32,000 d. $26,000

The bolded are the right answers, can you please show me the way how to get to those answers, thank you.