28. Jay Corp (an S Corp) has a sole shareholder Hawk. Hawk's adjusted basis in Jay Corp is $100,000. At the beginning of the current year Jay Corp has $30,000 of C corp earnings and profits and a AAA account of -O-. For the year Jay Corp earns $200,000 of taxable income and $50,000 of tax exempt interest. Jay Corp distributes a dividend at the end of the year for $240,000. a. What income does Hawk report on his income tax return with respect to Jay Corp? b. What is Hawk's adjusted basis in Jay Corp at the beginning of the next year? c. How would the answer to part (a) change if Jay Corp did not have a C Corp E & P at the start of the year