Blue Corporation has accumulated E&P of $38,000 at the beginning of the current tax year. Current E&P is $24,000. During the year, the corporation makes the following distributions to its sole shareholder who has a $25,000 basis for her stock.

Date	Amount Distributed
April 1	$40,000
June 1	15,000
August 1	20,000
November 1	5,000

The treatment of the $20,000 August 1 distribution would be

A) $20,000 is taxable as a dividend; $5,000 from current E&P and the balance from accumulated E&P.`

B) $20,000 is taxable as a dividend from accumulated E&P.

C) $6,000 is taxable as a dividend from accumulated E&P, and $14,000 is tax-free as a return of capital.

D) $6,000 is taxable as a dividend from current E&P, and $14,000 is tax-free as a return of capital.

Please provide an explanation, thank you!