In each of the following situations complete the blanks

Distribution (cash)	S/H Basis in Stock	Corporate E&P	Dividend	Return of Capital	Capital Gain
100,000	20,000	500,000
100,000	500,000	20,000
600,000	20,000	500,000
600,000	500,000	20,000
100,000	800,000	500,000
100,000	800,000	20,000
600,000	800,000	500,000

XYZ Corporation has one shareholder. The shareholders tax basis in his shares is $100,000. Corporate E&P BEFORE the effects of any distribution is $100,000. The corporation distributes the following property in INDEPENDENT situations. Explain the tax effect to the corporation and to the sole shareholder.

First, the corporation distributes land with a FMV of $200,000 and a tax basis to the corporation of $100,000.

Second, the corporation distributes land with a FMV of $100,000 and a tax basis to the corporation of $200,000.