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At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated...

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Accounting

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At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of $350,000. Blue's current E & P is $210,000, and at the end of the year, it distributes $700,000 ($350,000 each) to its equal shareholders, Pam and Jon. Pam's stock basis is $49,000; Jon's stock basis is $196,000. How is the distribution treated for tax purposes? If an amount is zero, enter "O" Pam has the following: Dividend income: 210,000X Capital gain: 21,900 X Stock basis after distribution: 49,000 X Jon has the following: Dividend income: 210,000X Capital gain: s 131,400 x Stock basis after distribution 204,400X

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please answer asap. will upvote. thank in advance! ...