Question: This year, Sooner Company reports current E&P of negative $320,000. Its accumulated E&P at the beginning of the year was $280,000. Sooner distributed $560,000 to its sole shareholder, Boomer Wells, on June 30 of this year. Boomer's tax basis in his Sooner stock is $82,500. (Leave no answer blank. Enter zero if applicable. Negative amounts should be indicated by a minus sign.)
A)How much of the $560,000 distribution is treated as a dividend to Boomer?
B) What is Boomer's tax basis in his Sooner stock after the distribution?
C) What is Sooner's balance in accumulated E&P on the first day of next year?