A) Jayhawk Company reports current E&P of $325,000 and accumulated E&P of negative $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. How much of the $400,000 distribution is treated as a dividend to Christine?

B)This year Sooner Company reports current E&P of negative $300,000. Its accumulated E&P at the beginning of the year was $210,000. Sooner distributed $400,000 to its sole shareholder, Boomer Wells, on June 30 of this year. Boomers tax basis in his Sooner stock is $75,000. How much of the $400,000 distribution is treated as a dividend to Boomer?