Tax Drill - Corporate Distributions At the beginning of the year, Myrna Corporation (a calendar year taxpayer) has E 2 P of $32,000. The corporation generates no additional E \& P during the year. On December 31 , the corporation distributes $50,000 to its sole shareholder, Emerson, whose stock basis is $10,000. If an amount is zero, enter " 0". As a result the distribution Emerson has dividend income of 5 and a taxable capital gain of s Emerson's stock basis is 5 after the distribution