Evaluate Corporate Distributions And Redemptions Practice Test

A C corporation distributes $50,000 cash to a shareholder. The corporation has current E&P of $30,000 and accumulated E&P of $10,000. How much of the distribution is treated as a dividend?

A shareholder receives a corporate distribution of $20,000 when the corporation has no E&P and the shareholder's basis is $15,000. The tax treatment is: