At 1/1/12 Rain Corp has 80,000 in accumulated E&P. They incur a deficit in current E&P of (50,000) for the tax year 2012. On 4/1/12 Rain Corp distributes 40,000 to its sole shareholder Nancy. Nancy’s basis at 1/1/12 in the corporation is 25,000. a. How is the distribution taxed to Nancy? b. What is Rain Corporation’s E&P at 12/31/12? c. What is Nancy’s basis in Rain at 12/31/12? d. Assume that the Accumulated E&P was 40,000, how would the distribution be taxed to Nancy?