McGraw-Hill's Taxation of Business Entities 3rd Edition by Connie Weaver, Brian Spilker, Edmund Outslay, John Robinson, Ronald Worsham, Benjamin Ayers, John Barrick

Exercise 26

Sooner Company reports current E P of negative $300,000 and accumulated E P of $200,000. Sooner distributed $400,000 to its sole shareholder, Boomer Wells, on June 30, 2012. Boomer's tax basis in his Sooner stock is $75,000.
a. How much of the $400,000 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 as of January 1, 2012