Objective Short Answer 33. X Corporation, a calendar year corporation, began the current year (Current Year) with Accumulated E&P of $3,000. X'Current E&P for the Current Year is $4,000. X had five shareholders, A, B, C, D and E. They were all unrelated and each owned 40 shares of X only class of stock outstanding, and each had an adjusted basis of $10 per share ($400 total). During the Current Year: (i) On May 5, X distributed $1,000 cash to each of A, B, C, D and E; (ii) On October 1 (exactly 34 of the way through the year) X redeemed 20 shares of stock from A in exchange for $16,000 cash; and (iii) On November 1, X redeemed 5 shares of stock from B in exchange for $4,000 cash. a. What income, gain or loss, if any, does A recognize as a result of the October 1 redemption? b. What income, gain or loss, if any, does B recognize as a result of the October 23 redemption? c. What income, gain or loss, if any does C recognize as a result of the May 5 distribution? d. What is X'accumulated E&P at the beginning of the next year? e. How would the solutions to questions b and d change, if at all, if X' current E&P were $40,000 instead of $4,000