ABC Corp $($ABC$)$ was formed I$5$ years ago by A$,$ B & C $(3$ individuals$).$ ABC uses the cash method of accounting and reports on a calendar year basis.

A$,$ B$.$ & C still own $100$ shs each of the $300$ shs of ABC. On $7/1$ of the current year, ABC distributed $$60,000\mathrm{.}00,$ $$20,000\mathrm{.}00$ each to A$,$ B and C$.$ No other distributions were made by ABC during the current year.

Assume A$\text{'}$s adjusted basis in his ABC shs is $$6,000\mathrm{.}00,$ B$\text{'}$s adjusted basis in herABC shs is $$50,000\mathrm{.}00,$ and C$\text{'}$s adj. basis in his ABC shs is $-0-.$Unless otherwise stated, assume that the figure for $"$a$/$edtp$"$ is the "accumulated earnings and profits" $($or deficit$)$ of ABC as of January $1$ of the current year. Assume that's the figure for $"$c$/$e&ep$"$ is the "current earnings and profits" $($or deficit$)$ of ABC during the current year. Treat each situation separately and characterize the distributions$10$ A$,$ B & C$.$

$($a$)$ A$/$e&ep is $$40,000\mathrm{.}00$ and c$/$e&p is $$30,000\mathrm{.}00.$

$($b$)$ A$/$e&p is SO and c$/$e&ep is $$30,000\mathrm{.}00.$

$($c$)$ A$/$e&ep is $$(60,000\mathrm{.}00)$ and c$/$e&ep is $$30,000\mathrm{.}00.$

$($d$)$ A$/$e&p is $$(30,000\mathrm{.}00)$ and c$/$e&ep is $$(30,000\mathrm{.}00).$

$($e$)$ AVe&ep is $$45,000\mathrm{.}00$ and c$/$e&ep is $$(30,000\mathrm{.}00).$

$($f$)$In $($e$)$ above, assume that it was possible to point to a specific event in the current year which caused the current deficit. How would this affect your answer to

$($e$)?$

$($g$)$Assume that B owned half her shs with an adjusted basis of $$5,000\mathrm{.}00$ and the other half with an adjusted basis of $$45,000\mathrm{.}00.$ How would this affect $($if at all$)$ any of your answers to $($a$)$ through $($d$)$ above?

$($H$)$In $($g$)$ above assume that B had acquired the shs with the $$5,000\mathrm{.}00$ basis on $9/1$ of the current year. How would this affect your answer to $($g$).$

$($i$)$Assume that ABC had $3$ classes of stock outstanding. A$,$ B & C each owned $100\%$ of one of the classes. A$\text{'}$s stock is cumulative preferred stock entitled to a $$20,000\mathrm{.}00$ dividend priority over any other class. B$\text{'}$s stock, while inferior $1$o A$\text{'}$s is entitled to a non$-$cumulative preference dividend of $$20,000\mathrm{.}00$ over C$\text{'}$s common stock. ABC distributes $$60,000\mathrm{.}00($$$20,000\mathrm{.}00$ each to A$,$ B & C$)$ as stated above. ABC's a$/$e&ep is $$40,000\mathrm{.}00$ and its c$/$e&ep is $-0-$ during the current year.