Clover Corporation is a calendar year taxpayer. Connie owns all of its stock. Her basis in the

Question:

Clover is a calendar year taxpayer. Connie owns all of its stock. Her basis in the stock is $10,000. On April 1 of the current (non-leap) year Clover distributes $52,000 to Connie. Determine the tax consequences of the cash in each of the following independent situations:
a. Current E&P of $15,000; accumulated E&P of $25,000.
b. Current E&P of $30,000; accumulated E&P deficit of ($20,000).
c. Current E&P deficit of ($73,000); accumulated E&P of $50,000.
d. Current E&P deficit of ($20,000); accumulated E&P deficit of ($15,000).
Corporation
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