At the start of the current year, Blue Corporation (a calendar year taxpayer) holds accumulated E & P of $345,000. Blue's current E & P is $207,000. At the end of the year, it distributes $690,000 ($345,000 each) to its equal shareholders, Pam and Jon. Their basis in the stock is $48,300 for Pam and $193,200 for Jon.

How is the distribution treated for tax purposes?

If an amount is zero, enter "0".

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

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