(Solution) - Describe the effect of a 100 000 cash distribution paid on -(2025 Original AI-Free Solution)

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Describe the effect of a $100,000 cash distribution paid on January 1 to the sole shareholder of a calendar year corporation whose stock basis is $25,000 when the corporation has
a. $100,000 of current E&P and $100,000 of accumulated E&P
b. A $50,000 accumulated E&P deficit and a $60,000 current E&P balance
c. A $60,000 accumulated E&P deficit and a $60,000 current E&P deficit
d. An $80,000 current E&P deficit and a $100,000 accumulated E&P balance
Answer Parts a through d again, assuming instead that the corporation makes the distribution on October 1 in a nonleap year.