Betacourt is a calendar year tax payer. All of the stock is owned by Austen. Her basis for the stock is 35,000. On March 1 (of a non leap year) Betacourt disrtibutes 120,000 to Austen. Determine the tax concequneces of the cash distribution to austen in each of the following independenat situations ( dividend, return on capial, capital gain, impact on stock basis) explain

Current E&P Accumulated E& P

30,000 80,000

70000 (50,000)

(100,000) 40,000

(20,000) (50,000)