Question: QUESTION # 4 On 1 / 1 Year 6 , it has negative accumulated E&P of ( $ 1 0 , 0 0 0 )

QUESTION #4
On 1/1 Year 6, it has negative accumulated E&P of ($10,000), and on 12/31 it has current E&P of $50,000. It distributes a $30,000 cash dividend to Jack and a $30,000 cash dividend to Jill at end of year. Jack and Jill each have a basis of $10,000 in their UTH stock.
How much of the dividend distribution is taxable to Jack and to Jill, and what if any other consequences result?
What is UTHs current and accumulated E&P after the dividend distributions?
What is accumulated E&P on 1/1, Year 7?
What is UTHs current and accumulated E&P after the dividend distributions?
What is accumulated E&P on 1/1, Year 7?
What is UTHs current and accumulated E&P after the dividend distributions?
What is accumulated E&P on 1/1, Year 7?

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