What is the effect of the distribution by tulip corporation


on january 1, tulip corporation has accumulated E & P of 300,000. its current E & P for the year is 90,000. during the year, tulip distributes 600,000 to its shareholders, anne and tom. anne has a basis in her stock of 65,000, while tom's basis is 120,000. what is the effect of the distribution by tulip corporation on anne and tom ?

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Accounting Basics: What is the effect of the distribution by tulip corporation
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