1. B Corporation has accumulated E&P of $10,000 on January 1, of the current year. B’s taxable income before dividend distributions is a loss of ($4,000). On December 15, B Corporation pays a property dividend of 10 acres of land it purchased ten years earlier for $10,000. The value of the land is $100,000. How will the distribution of land be taxed to B’s shareholders? A. taxable dividend of $100,000 B. taxable dividend of $66,760 C. taxable dividend of $78,500 D. taxable dividend of $56,760 2.H reports taxable income before special transactions of $30,000. In addition, H reports dividend from 1% ownership of D Corporation, a domestic corporation, of $3,000; and tax-exempt income from Virginia Bonds, of $4,000. H’s Current E&P for this year is A. $30,000 B. $33,000 C. $32,365 D. 37,000