Pheasant Corporation, a calendar year taxpayer, has $400,000 of current E&P and accumulated E & P of $180,000 (a) If Pheasant pays a $600,000 distribution to its shareholder on July 1, how much dividend income do the shareholders report? (b) If Pheasant's sole shareholder has a basis in her stock holding of $1,000,000 on July 1, what is her basis in her stock after the $600,000 distribution? 3. Purple Corporation makes a property distribution to its sole shareholder, Paul. The property distributed is a house (fair market value of $189,000; basis of $154,000) Before considering the consequences of the distribution, Purple's current E & P is $35,000 and its accumulated E & P is $140,000. Purple makes no other distributions during the current year. What is Purple's taxable gain on the distribution of the house, if any? Pheasant Corporation, a calendar year taxpayer, has $400,000 of current E&P and accumulated E & P of $180,000 (a) If Pheasant pays a $600,000 distribution to its shareholder on July 1, how much dividend income do the shareholders report? (b) If Pheasant's sole shareholder has a basis in her stock holding of $1,000,000 on July 1, what is her basis in her stock after the $600,000 distribution? 3. Purple Corporation makes a property distribution to its sole shareholder, Paul. The property distributed is a house (fair market value of $189,000; basis of $154,000) Before considering the consequences of the distribution, Purple's current E & P is $35,000 and its accumulated E & P is $140,000. Purple makes no other distributions during the current year. What is Purple's taxable gain on the distribution of the house, if any