Question: Problem 5-24 (Algorithmic) (LO. 1, 4) At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of

Problem 5-24 (Algorithmic) (LO. 1, 4)

At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of $85,000. Blue's current E & P is $51,000, and at the end of the year, it distributes $170,000 ($85,000 each) to its equal shareholders, Pooja and Jon. Pooja's stock basis is $11,900; Jon's stock basis is $47,600.

How is the distribution treated for tax purposes?

If an amount is zero, enter "0".

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

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

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