On 1/1/12 ABC corporation had accumulated E&P of 250,000 and current E&P for 2012 amounted to 80,000. On July 1, 2012 the corporation distributed 100,000 to its sole shareholder Amy. Amy's basis in ABC is 50,000. How is the distribution taxed to Amy? For the year ending 12/31/12, Ajax has a deficit in accumulated E&P of (70,000) and its current E&P for 2012 is 60,000. During the year Ajax distributed 50,000 each to its two shareholders Bob and Ted. Bob's stock basis is 70,000 and Ted's basis is 15,000. How is the distribution taxed to Bob and Ted and what is their basis at year end? At 1/1/12 Rain Corp has 80,000 in accumulated E&P. They incur a deficit in current E&P of (50,000) for the tax year 2012. On 4/1/12 Rain Corp distributes 40,000 to its sole shareholder Nancy. Nancy's basis at 1/1/12 in the corporation is 25,000. How is the distribution taxed to Nancy? What is Rain Corporation's E&P at 12/31/12? What is Nancy's basis in Rain at 12/31/12? Assume that the Accumulated E&P was 40,000, how would the distribution be taxed to Nancy?