First Co. had a deficit in E&P of $90,000 on December 31 last year. Its taxable income was $180,000 for this year. Cash dividends on common stock totaling $80,000 were paid in December this year. Modern should report the distribution to its shareholders as:

a. Return of capital 100 percent

b. Dividends 80/90, return of capital 10/90

c. Dividends 50 percent, return of capital 50 percent

d. Dividend