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Bruin Company reports current E&P of negative $100,000 in 2021 and accumulated E&P at the beginning of the year of $100,000. Bruin distributed $75,000 to

Bruin Company reports current E&P of negative $100,000 in 2021 and accumulated E&P at the beginning of the year of $100,000. Bruin distributed $75,000 to its sole shareholder on July 1, 2021. The shareholders basis in Bruin is $50,000. How is the distribution treated by the shareholder in 2021?

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