research 71. Thriller Corporation has one class of voting common stock, of which 1,000 shares are issued and outstanding. The shares are owned as follows: Joe 400 Miguel (Joe's son) 200 Lili (Joe's daughter) 200 Vinnie (unrelated) Total shares 200 1,000 Thriller Corporation has current E&P of $400,000 for this year and accumulated E&P on January 1 of this year of $60,000. During this year, the corporation made the following distributions to its shareholders: Required: 03/31: Distributed $100 per share to each shareholder ($100,000 in total). 06/30: Distributed $100 per share to each shareholder ($100,000 in total). 09/30: Distributed $100 per share to each shareholder ($100,000 in total). 12/31: Redeemed all of Vinnie's shares for $250,000 in cash. Page 18-39 a) Determine the tax status of each distribution made this year. b) Compute the corporation's accumulated E&P on January 1 of next year. c) Joe is considering retirement and would like to have the corporation redeem all his shares for $100,000 plus a 10-year note with a fair market value of $300,000. What action must Joe consider to guarantee that the redemption will be treated as an exchange? Could Joe still act as a consultant to the company? d) Thriller Corporation must pay attorney fees of $5,000 to facilitate the stock redemptions. Is this fee deductible?