Pantone Corporation is a calendar year taxpayer. Dave owns one-third (100 shares) of Pantone stock. His basis in the stock is $12,000. Sylvia owns two-thirds (200 shares) of Pantone stock. Her basis in the stock is $24,000. On June 10 of the current year, Pantone distributes $25,000 to Dave and $65,000 to Sylvia.

Determine the tax consequences of the cash distributions to Dave and Sylvia if current E&P is $32,000 and accumulated E&P is $31,000

Pantone Corporation is a calendar year taxpayer. Dave owns one-third (100 shares) of Pantone stock. His basis in the stock is $12,000. Sylvia owns two-thirds (200 shares) of Pantone stock. Her basis in the stock is $24,000. On June 10 of the current year, Pantone distributes $25,000 to Dave and $65,000 to Sylvia. Read the requirements. GO Remaining distribution 0 ol 0 0 Return of capital 0 Capital gain (loss) Remaining stock basis 12000 24000 Requirement b. Determine the tax consequences of the cash distributions to Dave and Sylvia if current E&P is $32,000 and accumulated E&P is $31,000. (Complete all input fields. For zero amounts, make sure to enter "0" in the appropriate input field. Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) Dave Sylvia Distribution 25000 65000 Requirements Dividend income Remaining distribution Return of capital Determine the tax consequences of the cash distributions to Dave and Sylvia in each of the following independent situations: a. Current E&P of $64,000; accumulated E&P of $140,000. b. Current E&P of $32,000, accumulated E&P of $31,000. 0 Capital gain (loss) Remaining stock basis