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)	200
Total shared	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:

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.

Required:

1. Determine the tax status of each distribution made this year.
2. Compute the corporation's accumulated E&P on January 1 of next year.

Determine the tax status of each distribution made this year.

Treatment
	distribution on 03/31
	distribution on 06/30
	distribution on 09/30
	distribution on 12/31

Compute the corporation's accumulated E&P on January 1 of next year.

Accumulated E&P at January 01 of next year