Aggie Corporation made a distribution of $$500,000$ to Rusty Cedar in partial liquidation of the company on December $31$ of this yearRusty, an individual, owns $100$ shares $100$ percent$)$ of Aggie Corporation. The distribution was in exchange for $50$ percent of Rusty's stock in the company. At the time of the distribution, the shares had a fair market value of $$200$ per share. Rusty's tax basis in the shares was $$50$ per share. Aggie had total E&P of $$8,000,000$ at the time of the distribution $-$What are the amount and character $($capital gain or dividend$)$ of any income or gain recognized by Rusty as a result of the partial liquidation?

$-$Assuming aggie made no other distributions to Rusty during the year, by what amount does Aggie reduce its total E&P as a result of the partial liquidation?