1. X Corporation distributed $10,000 to Andy, its sole shareholder, on May 1, 2020. Andys stock basis in X Corporation, before adjusting for the 2020 distribution, was $8,000. X Corporation had a deficit in accumulated E & P of $15,000 on January 1, 2020. X Corporation had a $5,000 loss as of December 31, 2020 (incurred evenly throughout the year). Based on this information, Andy will report:

   		a. Dividend income of $2,000 and $8,000 return of capital
   		b. Return of capital of $2,000 and $8,000 dividend income.
   		c. Dividend income of $5,000 and return of capital of $5,000.
   		d. Dividend income of $10,000 and capital gain of zero.
   		e. None of the above.

2. The Beta Corporation owns a building with a basis of $20,000 that is subject to a debt of $80,000. The FMV of the building is $50,000. Beta distributes the property in a nonliquidating distribution (along with the debt) to Ben, its sole shareholder. What is Bens basis in the building received from Beta in the distribution?

		a. $80,000.
		b. $50,000.
		c. zero
		d. $30,000.
		e. none of the above.

3. The Beta Corporation owns a building with a basis of $20,000 that is subject to a debt of $80,000. The FMV of the building is $50,000. Beta distributes the property in a nonliquidating distribution (along with the debt) to Ben, its sole shareholder. What is the amount of the distribution to Ben?

		a. $80,000.
		b. $50,000.
		c. zero.
		d. $30,000.
		e. none of the above.

4.The Beta Corporation owns a building with a basis of $20,000 that is subject to a debt of $80,000. The FMV of the building is $50,000. Beta distributes the property in a nonliquidating distribution (along with the debt) to Ben, its sole shareholder. What amount of gain or loss does Beta recognize on the distribution?

		a. $80,000.
		b. $60,000.
		c. $20,000.
		d. $30,000.
		e. none of the above.

5. The Beta Corporation owns a building with a basis of $20,000 that is subject to a debt of $80,000. The FMV of the building is $50,000. Beta distributes the property in a nonliquidating distribution (along with the debt) to Ben, its sole shareholder. What is the net effect of this transaction on Beta Corporations E&P?

		a. $60,000 increase.
		b. $60,000 decrease.
		c. $20,000 decrease.
		d. $30,000 increase.
		e. none of the above.