7. On January 1, Gulf Corporation (a calendar year taxpayer) has accumulated E & P of $200,000. During the year, Gulf has Current EP of ($160,000) from operations that accrue ratably. On 12/31, Gulf distributes $170,000 to Sharon, its sole shareholder, who had a basis in her stock of $65,000.

Respond to the following questions:

a. How much of the $170,000 is a dividend to Sharon?

b. Calculate Sharons Capital Gain from the distribution received

c. What is Sharons remaining basis in her stock