Mhole Onece Subtotal E\&P Limit Endine E\&P (Greater of Subtotal or E\&P Limit): Qualifying Stock Redemption (continued) Qualifying Stock Redemption (continued) Effect on Stockholder: Amount of Distribution: FMV of Property (or Liability if Greater) Less: Liability Amount Distributed Recognized Gain or Loss: Amount Distributed less: Basis in Stock Redeemed Recognized Gain (Loss) (Losses Disallowed for >50% Shareholders) Tax: Recognized Gain (Loss) x Capital Gains Tax Rate Shareholder Tax (Benefit) Basis of Property to Shareholder: FMV of Property (or Liability if Greater) Shareholder's Stock Basis: Beginning Basis less: Basis in Stock Redeemed Ending Stock Basis Stock Redemption Temp 3.Use the same facts as in Problem 1 (Tar Heel Corporation), as to the amount of accumulated E\&P, the dates, the land's fair market value, adjusted tax basis, and mortgage distributed to its sole shareholder, William Roy at the end of the year. However, now assume Tar Heel has a current E\&P than is Negative and is $50,000 less than their accumulated E\&P (for example, if the accumulated E\&P is $00,000, the current E\&P would be ( $450,000 )). Also, as part of this distribution, Tar Heel is redeeming 600 shares from its sole shareholder, William, who purchased 1,000 shares for $30,000 two years ago. William has a capital gain tax rate of 15%. The distribution is a qualified stock redemption as Tar Heel is selling the 600 shares to another shareholder. Fill in the template