Sienna Corporation is a calendar year taxpayer. Phil owns one$-$third $(100$ shares$)$ of Sienna stock. His basis in the stock is $$28,000.$ Ann owns two$-$thirds $(200$ shares$)$ of Sienna stock. Her basis in the stock is $$50,000.$ On June $10$ of the current year, Sienna distributes $$30,000$ to Phil and $$50,000$ to Ann.

Read the requirements.

Requirement a$.$ Determine the tax consequences of the cash distributions to Phil and Ann if current earnings and profits $($E&P$)$ is $$30,000$ and accumulated E&P is $$180,000.($Complete all input fields. Enter a $0$ for any zero amounts. Use parentheses or a minus sign for losses.$)$

$.$

$\backslash$table$[[,$Phil,Ann$],[$Distribution$],[$Dividend income$],[$Remaining distribution$],[$Return of capital$],[$Capital gain $($loss$),,],[$Remaining stock basis,,$]]$

Requirements

Determine the tax consequences of the cash distributions to Phil and Ann in each of the following independent situations:

a$.$ Current E&P of $$30,000$; accumulated E&P of $$180,000.$

b$.$ Current $E$&$P$ of $$26,000$; accumulated $E$&$P$ of $$15,000.$