Exercise 19-23 (Algorithmic) (LO. 1) At the beginning of the year, Myrna Corporation (a calendar year taxpayer) has E & P of $122,400. The corporation generates no additional E & P during the year. On December 31, the corporation distributes $183,600 to its sole shareholder, Abby, whose stock basis is $36,720. How is the distribution treated for tax purposes? If an amount is zero, enter "0". As a result the distribution Abby has the following: Dividend income: Return of capital: Capital gain: $ Stock basis after the distribution: Exercise 19-24 (Algorithmic) (LO. 3) On January 1 of the current year, Rhondell Corporation has accumulated E & P of $42,000. Current E & P for the year is $126,000, earned evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January 1 to April 30. On May 1, Elizabeth sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $67,200 ($33,600 to Elizabeth and $33,600 to Jonathan) on April 30 and a total of $117,600 ($58,800 to Jonathan and $58,800 Marshall) on December 31. Determine the allocation of the distributions by completing the table below. Assume that the shareholders have sufficient basis in their stock for any amount that is treated as return of capital. If an amount is zero, enter "0". If required, round any division to two decimal places and use in subsequent computations. Round final answers to the nearest dollar. April 30 distribution of $67,200 December 31 distribution of $117,600 From Current E & P From Accumulated E & P Treated as Return of Capital $