Barbara and Bud are two equal shareholders of Nexus Corporation since its inception. Each had transferred net assets at inception (under IRC $351) that resulted in the shares of Nexus Corp. having basis of $20,000 for each of Barbara and Bud. On July 31 of 2020 Bud sells all his shares to Clarence for $30,000. Nexus Corp. had accumulated earnings and profits of $50,000 at the beginning of the year (January 1, 2020). During the year, Nexus Corp. made two distributions, the first was for $80,000 on July 1, 2020 and the second was for $70,000 on December 31, 2020. Nexus Corp. had $40,000 of earnings and profits for the current year ended December 31, 2020. Required: First, calculate the source of the distribution made by Nexus Corp. (i.e. dividend?). Second, calculate the tax effect (i.e., income inclusion?) to each of the three shareholders receiving the distribution for their personal year ended December 31, 2020. (Show your work)