Pan A. The General Pattern of Section 301 and section 316 Cash Distributions ABC Corp (ABC) was formed 15 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 $60,000.00, $20,000.00 each to A, B and C. No other distributions were made by ABC during the current year. Assume A's adjusted basis in his ABC she is $6,000.00, B's adjusted basis in her ABC shs is $50,000.00, and C's adj. basis in his ABC shs is -0-. Unless otherwise stated, assume that the figure for "a/cap" is the "accumulated earnings and profits" (or deficit) of ABC as of January 1 of the current year. Assume hat's the figure for "cledp" is the "current earnings and profits" (or deficit) of ABC during the current year. Treat each situation separately and characterize the distributions o A, B & C. (a) Ale&p is $40,000.00 and cle&p is $30,000.00. (b) Ale&p is 50 and cle&p is $30,000.00. (c) AJeep is $(60,000.00) and cledep is $30,000.00. d) Ale&p is S(30,000.00) and cleap is $(30,000.00). (e) AJe&p is $45,000.00 and cle&p is $(30,000.00). 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)? Assume that B owned half her shs with an adjusted basis of $5,000.00 and the other half with an adjusted basis of $45,000.00. 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 $5,000.00 basis on 9/1 of the current year. How would this affect your answer to (g). (1) Assume that ABC had 3 classes of stock outstanding. A, B & C each owned 100% of one of the classes. A's stock is cumulative preferred stock entitled to a $20,000.00 dividend priority over any other class. B's stock, while inferior to A's is entitled to a non-cumulative preference dividend of $20,000.00 over C's common stock. ABC distributes $60,000.00 ($20,000.00 each to A, B & C) as stated above. ABC's a/exp is $40,000.00 and its cheap is -0- during the current year. Assume that ABC is an old corporation. It has current edp of $10,000.00, post 1913 accumulated eap of $30,000.00, pre 1913 accumulated e&p of $15,000.00, and it has realized a gain of $20,000.00 attributable to an increase in value which occurred before 1913. It distributes $60,000.00 ($20,000.00 each to A, B & C) on 7/1 of the present year. (k) Suppose that ABC makes 2 distributions during the current year: $48,000.00 on 3/1 and $12,000.00 on 9/1. ABC had s/edp of $24,000.00 and cleap of $20,000.00. What portion of each distribution is a dividend