Question: Problem 19-32 (Algorithmic) (LO. 1, 4) At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of

Problem 19-32 (Algorithmic) (LO. 1, 4)

At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of $110,000. Blue's current E & P is $66,000, and at the end of the year, it distributes $220,000 ($110,000 each) to its equal shareholders, Pam and Jon. Pam's stock basis is $15,400; Jon's stock basis is $61,600.

How is the distribution treated for tax purposes?

If an amount is zero, enter "0".

Pam has the following: Dividend income: $fill in the blank 1 Capital gain: $fill in the blank 2 Stock basis after distribution: $fill in the blank 3

Jon has the following: Dividend income: $fill in the blank 4 Capital gain: $fill in the blank 5 Stock basis after distribution: $fill in the blank 6

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