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. Amys 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. Bobs stock basis is 70,000 and Teds basis is 15,000. How is the distribution taxed to Bob and Ted and what is their basis at year end?