Aowns half the common stock of x with an adjusted basis of $40, and y owns the other half of the x common stock with an adjusted basis of $100. x’s current e& p from current-year income and expenses/losses is $94, and x has no accumulated e& p. x uses the accrual method, all taxpayers are on the calendar year, and § 1059 does not apply. assume that the corporate tax rate is 34 percent. x leases some rental property that it owns to t, and t agrees to pay the annual rent of $60 directly to x’s shareholders, a and y. what are the results to a, y, and x?

Juanita and sam attend a beach party and notice that the local beach appears to have a great deal more trash washed up on shore than it did when they were young. the water doesn't appear nearly as clear, and there seems to be less evidence of small water creatures living in the shallows. an afternoon at the local library convinces them that one major cause is the new factory nearby. after some discussion, they decide their next step should be identifying the cause of the changes identifying the problem picketing the guilty factory lobbying their elected representatives to complain about the problem talking to a local environmental group about solutions