Magnolia Corporation (C-corp) has accumulated earnings and profits on January 1, 2017 of $115,000. On December 31, 2017 when its current earnings and profits are-$30,000 Magolia makes $75,000 cash distribution each to its two shareholders on December 31, The shareholders are Joanne (owns 50%) and Chip Corporation (owns 50%). Chip corporation is also a C-corporation. Joanne's stock basis is $10,000 and Chip's stock basis is $90,000. (5 Points) 1. a. What are the consequences to Joanne and Chip for the distribution? b. How would your answer change in part a, if instead the accumulated earnings and profits were- $45,000