Determine the tax consequences for each of the following situations below:

A. Atlas Inc made $100,000 distribution this year to its sole shareholder, Zion. Zion has a basis in his stock of $10,000. Current E&P is $70,000. Accumulated E&P is $25,000.

B. Barry Inc made $75,000 distribution this year to its sole shareholder, Yasmine. Yasmine has a basis in her stock of $25,000. Current E&P is $30,000. Accumulated E&P is $(10,000).

C. Cathy Inc made $10,000 distribution this year to its sole shareholder, Xena. Xena has a basis in her stock of $15,000. Current E&P is $(24,000). Accumulated E&P is $20,000.

D. Dennis Inc made $30,000 distribution this year to its sole shareholder, Walter. Walter has a basis in his stock of $20,000. Current E&P is $(20,000). Accumulated E&P is $(6,000).

Determine the tax consequences:

What is the Dividend?

What is the Return on Capital (ROC)?

What is the Capital Gain?

What is shareholder's ending stock basis ($)?

Accumulated E&P beginning of next year ($)?