Complete the following schedule for each case. Assume that the shareholders have a sufficient basis in the stock investment.

All distributions are made at year end (December 31) except for part (e). For part (e) assume the $130,000 distribution is made on June 30.

If amount is zero, enter "0".

	Accumulated E & P Beginning of Year						Current E & P	Cash Distributions			Dividend Income	Return of Capital
a.	($200,000)						$70,000	$130,000			$	$
b.	150,000						(120,000)	210,000			$	$
c.	90,000						70,000	150,000			$	$
d.	120,000						(60,000)	130,000			$	$
e.	$120,000						($60,000)	$130,000*			$	$

* The distribution of $130,000 is made on June 30 and the corporation uses the calendar year for tax purposes.

Answer rating: 100% (QA)

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