At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of $100,000. Blue's current E & P is $60,000, and at the end of the year, it distributes $200,000 ($100,000 each) to its equal shareholders, Pooja and Jon. Pooja's stock basis is $11,000; Jon's stock basis is $26,000.

How is the distribution treated for tax purposes?

If an amount is zero, enter "0".

Pooja has the following: Dividend income: Capital gain: Stock basis after distribution:

Jon has the following: Dividend income: Capital gain: $ Stock basis after distribution: