24. LO.1, 4 At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E&P of $100,000. Blue's current E&P is $60,000, and at the end of the year, it distributes $200,000 ($100,000 each) to its equal shareholders, Pam and Jon. Pam's stock basis is $11,000; Jon's stock basis is $26,000. How is the distribution treated for tax purposes