Ashley, the sole shareholder of Hawk Corporation, has a stock
basis of $400,000 at the beginning of the year. On July 1, she
sells all of her stock for $2 million to Matt (1 million) and Brody
(1 million) . On January 1, Hawk has accumulated E & P of
$180,000 and during the year, current E & P of $320,000. Hawk
makes the following cash distributions: $270,000 to Ashley on March
31, $180,000 to Matt on October1 and $180,000...