13. On January 1, Navajo Corporation, a C corporation and a calendar year taxpayer, has accumulated E & P of $190,000. During the year, Navajo has current E & P before distributions of ($240,000). On June 30, Navajo distributes $100,000 to Jerome, its sole shareholder, whose stock basis before distribution is $40,000. How much of the $100,000 distribution is a dividend to Jerome? a) $-0- b) $40,000 Oc) $50,000 Od) $100,000 e) $70,000