33. Hawkeye Company reports current E&P of $300,000 this year and accumulated E&P at the beginning of the year of $200,000. Hawkeye distributed $400,000 to its sole shareholder, Ray Kinsella, on December 31 of this year. Rays tax basis in his Hawkeye stock is $75,000.

a) How much of the $400,000 distribution is treated as a dividend to Ray?

b) What is Rays tax basis in his Hawkeye stock after the distribution?

c) What is Hawkeyes balance in accumulated E&P as of January 1 of next year?