Compute E & P for Crimson in $2023.$ Show calculation! $13.$ At the beginning of the year, Star Limited Corp., a calendar year corporation, has accumulated $E$ & P of $$65,000.$ During the year, Star incurs a loss of $$40,000$ which accrues ratably. On October $1,$ Star distributes $$60,000$ of cash to Penny, its sole shareholder.

How is Penny taxed on the distribution? Be specific!