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Abby is a shareholder in the A Corp. Abby's basis in her stock is $1,000....

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Accounting

Abby is a shareholder in the A Corp. Abby's basis in her stock is $1,000. She receives an $850 distribution of cash at the end of 2021. At the time of the distribution, A Corp has an E&P of $100 (including current and accumulated).

a. What is the amount of dividend out of the distribution of $850?

b. What is Abbys basis in her stock after the distribution?

c. Same facts except that Abby received an $1,100 distribution of cash. Hows the $1,100 distribution treated and taxed for tax purposes?

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