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

50,000

20,000

500,000

200,000

50,000

20,000

100,000

20,000

300,000

130,000

500,000

20,000

130,000

500,000

500,000

700,000

800,000

20,000

20,000

800,000

500,000

XYZ Corporation has one shareholder.The shareholder's tax basis in his shares is $60,000.Corporate E&P BEFORE the effects of any distribution is $10,000.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 $120,000 and a tax basis to the corporation of $70,000.