Grey Inc is organized as a C Corp. Accumulated E & P is ($50,000) and current E & P is ($10,000). Shane Grey, the sole shareholder takes as a distribution, inventory with a Fair market value of $25,000 and a corporate basis of $20,000. Shanes basis in his stock is $16,000.

At the corporate level, Grey Inc would report as income

At the individual level Shane Grey would report a dividend of

At the individual level Shane Grey would report the return of capital of

At the individual level Shane Grey would report a capital gain of