orparation Y was formed on Qctaber I, 2013 by 2 sharehalders who each contributed \$20.000 cash. Shareholder A is a corparation while Sharehalder B is an individual. Corporation Y has revenues in 2013 of $50.000 and salary expenses of S201.000. At the end af the 2013 tax year. Corporation Y receives a K-1 from a partnership in which it uwis 50KK. The K-1 reports municipal interest income of SID.000 and Low Income Housing Credits af S2.000. Carparation Y has an eflective tax rate of 40% for all years and has no business activity in 2014. Dn January 1. 2014 Corparation Y distributes $8.000 (each) in cash to both Sharehalder A 8 B. 59. Carparation Y has accumulated EGP immediately befare the distribution of \$20.000. a. True b. False 60. Shareholder A has taxable income as a result of the distribution of: a. S8,000 b. S4,000 c. S2,800 d. S[ Gl. Shareholder B's basis in Corporation Y's stock immediately after the distribution is: a. S20,000 c. S27, 000 b. SI2,000 d. S24,000 62. Following the distribution, Corporation Y has accumulated Earnings \& Prafits of: a. S30,000 b. S14,000 c. SI6,00] d. $26,000 E. $4,000 orparation Y was formed on Qctaber I, 2013 by 2 sharehalders who each contributed \$20.000 cash. Shareholder A is a corparation while Sharehalder B is an individual. Corporation Y has revenues in 2013 of $50.000 and salary expenses of S201.000. At the end af the 2013 tax year. Corporation Y receives a K-1 from a partnership in which it uwis 50KK. The K-1 reports municipal interest income of SID.000 and Low Income Housing Credits af S2.000. Carparation Y has an eflective tax rate of 40% for all years and has no business activity in 2014. Dn January 1. 2014 Corparation Y distributes $8.000 (each) in cash to both Sharehalder A 8 B. 59. Carparation Y has accumulated EGP immediately befare the distribution of \$20.000. a. True b. False 60. Shareholder A has taxable income as a result of the distribution of: a. S8,000 b. S4,000 c. S2,800 d. S[ Gl. Shareholder B's basis in Corporation Y's stock immediately after the distribution is: a. S20,000 c. S27, 000 b. SI2,000 d. S24,000 62. Following the distribution, Corporation Y has accumulated Earnings \& Prafits of: a. S30,000 b. S14,000 c. SI6,00] d. $26,000 E. $4,000