At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of $180,000. Blue's current E & P is $108,000, and at the end of the year, it distributes $360,000 ($180,000 each) to its equal shareholders, Pam and Jon. Pam's stock basis is $25,200; Jon's stock basis is $100,800. How is the distribution treated for tax purposes?

Each shareholder has dividend income of ............ $. In addition, Pam has a reduction in stock basis to $ ............... and a capital gain of .............$. Jon has a reduction in stock basis to .................. $.