3.On January 1, 2021, Hayden Corp. has accumulated E&P of $10,000. Current E&P amounts to $30,000. Assume these were earned evenly throughout the year. Phillip and Steven are equal shareholders of Hayden Corp. from January 1 through June 30, 2021. On July 1^st, Phillip sells his stock to Kevin. Hayden Corp. makes two distributions to its shareholders during the year. First distribution of $20,000 each was made to Phillip and Steven on June 30, 2021, and the second distribution of the same amount was made to Steven and Kevin each on December 31, 2021. Assume the basis of shares to Phillip, Steven and Kevin are $10,000 each. Please calculate the tax effect of these distributions.