Problem 19-37 (LO. 1,3) Black Corporation and Tom each own 50% of Tan Corporation's common stock. On january 1, Tan has a deficit in accumulated E & P or 200,000. Its current E & P is $90,000. During the year, Tan makes cash distributions of $40,000 each to Black and Tom Click here to view the Dividend Recelved Deduction Table a. Complete the statements below that outline how the two shareholders are taxed on the distribution. bisck Corporation has dividend Income or 80,000 x nd is entitled to avidends receved deduction a 40,00o Tom has abvidend incoo,00o x, which 8,000x s taxed t the preferentat income tax rate r 40.000x 80,000 X and is entitled to a dividends received deduction of 40,000 X 8,000 x,which 8,000 x is taxed at the preferential income tax rate. b. Tan Corporation's accumulated E & P at year-end is a deficit balance of s190,000v