34. Jayhawk Company reports current E&P of $300,000 and a deficit in accumulated E&P of ($200,000). Jayhawk distributed $400,000 to its sole shareholder, Christine Rock, on the last day of the year. Christines tax basis in her Jayhawk stock is $75,000.

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

b) What is Christines tax basis in her Jayhawk stock after the distribution?

c) What is Jayhawks balance in accumulated E&P on the first day of next year?