What form would BP use to report non-dividend distributions?

Bob and Paul each own half of the 100 outstanding shares of BP Corporation. This year BP reported ta Show more Bob and Paul each own half of the 100 outstanding shares of BP Corporation. This year BP reported taxable income of $6000 and was subject to a 25 percent tax rate. In addition BP received $20000 of life insurance proceeds due to the death of an employee (BP paid $500 in life insurance premiums this year). BP had $5000 of accumulated E&P at the beginning of the year. a. What is BPs current E&P? (Show your work with detailed descriptions) Calculation of BPs current E&P Taxable income $6000 (-) 25% of tax rate $1500 $ 4500 BPs current E&P= Taxable income (after 25% tax rate) + life ins premium =$4500+$500=$5000 b. BP distributed $6000 on February 15 and $30000 on August 1. What total amount of dividends will Bob and Paul report? (Show your work with detailed descriptions) B and P each own half of the 100 outstanding shares of BP Corporation: Total amount of dividends Bob and Paul report are: Since B and P share equal investment of shares. There would be equal participation in dividends. Feb15=$6000=$3000(B)+$3000(P) Aug15=$30000=$15000(B)+$15000(P) Hence B and P report $18000(3000+15000) of dividends each. c. What amount of capital gain (if any) would Bob and Paul report on the distributions in part b if their stock basis is $2000 and $10000 respectively? (Please not only give me numbers but use words here to describe what is happening. Tell me how you got to your answer.) d. What form would BP use to report non-dividend distributions? Form 5452 e. On what form (line) would Bob and Paul report these distributions? (Be specific. In addition to what line its reported on where does it flow from there? Does it flow to another form on the return? What part of that other form?) I need help with C and E Show less

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