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 shareholder's 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.Explain the tax effect to the corporation and to the sole shareholder.

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

PLEASE EXPLAIN ME HOW YOU GOT THE NUMBERS. THANKS!