At the beginning of the year, Myrna Corporation (a calendar year taxpayer) has E & P of $82,150. The corporation generates no additional E & P during the year. On December 31, the corporation distributes $123,225 to its sole shareholder, Abby, whose stock basis is $24,645. How is the distribution treated for tax purposes?

Dividend Income- $ 82,150.00

Return of Capital- $ 24,645.00

Capital Gain- $ 16,430.00

Stock Basis after Distribution- $ 0