QUESTION 4 Jayhawk Company reports current E&P of $325,000 and accumulated E&P of negative $200,000. Jayhawk distributed $400,000 to its sole shareholder, Christine Rock, on the last day of the year. Christine's tax basis in her Jayhawk stock is $75,000. How much of the $400,000 distribution is treated as a dividend to Christine? QUESTIONS This year Sooner Company reports current E&P of negative $300,000. Its accumulated E&P at the beginning of the year was $210,000 Sooner distributed $400,000 to its solo shareholder, Boomer Wells, on June 30 of this year. Boomer's tax basis in his Sooner stock is $75,000. How much of the $400,000 distribution is treated as a dividend to Boomer? QUESTION 6 Boilermaker, Inc, reported taxable income of $450,000 this year and paid federal income taxes of $94,500. Not included in the company's computation of taxable income is tax-exempt income of $20,000, disallowed meals and entertainment expenses of $30,000, and disallowed expenses related to the tax-exempt income of $1,000. Boilermaker deducted depreciation of $100,000 on its tax return. Under the alternative (E&P) depreciation method, the deduction would have been $60,000. Compute the company's current E&P