1. In each of the situations described in (a) through (e), assume that:

X Corporation only has one shareholder for 20X3, A (an individual) having a $1,000 stock basis.

X Corporation makes a single distribution to A of property on April 1, 20X3. The market value of the property is $6,000 and its adjusted basis is $2,000.

Assume: The corporate tax rate is 50% and there is other taxable income for the year of $1,000.

Describe the federal income tax consequences to X Corporation and A under each of the following situations in 20X3:

1. Accumulated E&P are $0.
2. Accumulated E&P are <$8,000>.
3. Accumulated E&P are $4,000.
4. Accumulated E&P are $4,000 and the property distributed has an adjusted basis of $8,000 instead of $2,000.
5. In general terms, explain how your answer would change for a to d if A were a corporation.