Throughout the current tax year (payment dates provided below), Winchester distributed $70,000 cash to its shareholders (25% to each shareholder): 

February 1              - $15,000

May 31                     - $15,000

November 30         - $20,000

December 31         - $20,000

The beginning stock basis for each shareholder was as follows:

Sam                        - $11,000

Dean                      - $3,000

Bobby                    - $35,000

Cass                       - $0

Assume Winchester's current E&P was a negative ($45,000) and its accumulated E&P at the beginning of the year was a positive $35,000. How much of the total $75,000 distribution will be reported as a dividend distribution to the shareholders?

A). $16,250
B). $0
C). $70,000
D). $35,000