Ohio Corporation has a \($40,000\) accumulated E&P balance at the beginning of the current year, and it has a \($73,000\) current E&P deficit for the current year (which is not a leap year). The corporation distributes \($60,000\) cash to its sole shareholder on May 5. The shareholder’s tax basis in her Ohio stock at the beginning of the year is \($325,000\).

a. What amount of the \($60,000\) distribution is taxable as a dividend (assume a ratable allocation of the deficit)?

b. What are the amount and character of any non dividend distributions to the shareholder?

c. What is the amount of Ohio’s accumulated E&P balance (deficit) on the last day of the year?