Alec owns $5\%$ of Sinks, Inc. He purchased the Sinks stock $10$ years ago for $$80,000$ and Sinks has not made any distributions since that time.$$ This year, Sinks makes a cash distribution of $$1,000,000($total$)$ to shareholders. Sinks has $$300,000$ of current E&P and $$100,000$ of accumulated E&P$.$

What amount of his share of the distribution is a dividend to Alec? What amount is a reduction to basis? Capital gain?