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Z Corp has sufficient E & P. It makes a $1,000 distribution to each of...

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Accounting

Z Corp has sufficient E & P. It makes a $1,000 distribution to each of its four individual shareholders: Jim, Jack, Joe and Jeff, who own the stock equally (25% each). The shareholders have the election of taking the distribution in the form of cash or stock. Jim and Jack choose a cash distribution and Joe and Jeff choose the stock distribution

A) Yes or No: Is the distribution taxable to:

Jim

Jack

Joe

Jeff

B) If the distribution is taxable, how much income does each recognize? (if it is not taxable, indicate N/A)

Jim

Jack

Joe

Jef

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