Part A:

A, Inc. made a $100,000 distribution this year to its sole shareholder, Z. Z has a basis in her stock of $10,000. Determine the tax consequences to Z in the following situation: (8 points)

Distribution	CE&P	AE&P	Dividend	ROC	Capital Gain
100,000	70,000	25,000

Zs ending stock basis $

Accumulated E&P, beg of next year $

Part B:

B, Inc. made a $75,000 distribution this year to its sole shareholder, Y. Y has a basis in her stock of $25,000. Determine the tax consequences to Y for the following situation: (8 points)

Distribution	CE&P	AE&P	Dividend	ROC	Capital Gain
75,000	30,000	(10,000)

Ys ending stock basis $

Accumulated E&P, beg of next year $