- Flower Corporation is a calendar year, cash method C corporation. April, an individual, owns 100% of Flower Corporations stock. Aprils basis in the stock is $7,000. Flower Corporation has a positive current E&P balance of $15,000 and a deficit accumulated E&P balance of $20,000. If, on December 31, Flower Corporation distributes $50,000 in cash to April in a nonliquidating distribution (the only distribution made by Flower all year), what are the income tax consequences to April?

- Define a"dividends received deduction."

- Smart Corporation is owned 49% by Brilliant Corporation and 51% by Jed, an individual. How are Brilliant, Smart, and Jed treated for income tax purposes if Smart distributes a dividend to them?