At the beginning of the year, Myrna Corporation (a calendar year taxpayer) holds E & P of $106,300. The corporation generates no additional E & P during the year. On December 31, the corporation distributes $159,450 to its sole shareholder, Abby, whose stock basis is $31,890. How does the Federal income tax law treat this distribution?

If an amount is zero, enter "0".

As a result the distribution Abby has the following: Dividend income: $ Return of capital: $ Capital gain: $ Stock basis after the distribution: $