8. Assume the normal starting point for determining the E&P (earnings & profits) for the current year. Indicate whether each of the following cases would increase (INC), decrease (DEC), or have no effect (N/E) on the starting point of a corporation's E&P. For example, a payment of deductible salary would be N/E because it's already included in calculating the starting point. Be specific as to amounts, the first answer is the amount and the second answer is the INC, DEC, or N/E.

Case 1: A corporation distributes land worth $100 with an adjusted basis of $30,000

Amount:

Increase, decrease, or no effect:

Case 2: what is the answer if the land in the previous question was subject to a mortgage of $5,000?

Amount:

Increase, decrease, or no effect:

Case 3: Spends $250 on a meal with a business client where business was discussed. Assume the documentation is proper.

Amount:

Increase, decrease, or no effect:

Case 4: A corporation distributes as a dividend land worth $300 with an adjusted basis of $300.

Amount:

Increase, decrease, or no effect:

Case 5: A corporation owns a hunting lodge that is used to entertain clients. Similar property usually rents for $8,000 per week. The president uses the lodge with his family and next-door neighbor for two weeks and reimburses the corporation $1,000.

Amount:

Increase, decrease, or no effect: