Payment Corporation Has Accumulated E&P of $19,000 and Current E&P

question 97

Essay

Payment Corporation has accumulated E&P of $19,000 and current E&P of $28,000. During the year, the corporation makes the following distributions to its sole shareholder: $$\begin{array} { | l | c | } \hline { \text { Date } } & \begin{array} { c } \text { Amount } \\\text { Distributed }\end{array} \\\hline \text { April 1 } & \$ 20,000 \\\text { June 1 } & 20,000 \\\text { August 1 } & 15,000 \\\text { November 1 } & 5,000 \\\hline\end{array}$$ The sole shareholder's basis in her stock is $45,000. What are the tax consequences of the June 1 distribution?

---

Definitions:

Job Scope

The breadth and depth of a job.

Role Overload

A situation where an employee is expected to fulfill too many roles at once, potentially leading to stress and reduced job performance.

Role Ambiguity

The uncertainty experienced by individuals when they lack clear understanding of their job duties, authority, and responsibilities.

Techno-ambiguity

The unclear or confusing relationship people have with technology, often related to its use or implications.