Corporation Z distributes $200 in cash to shareholder C and $200 in cash to shareholder D during the current year at quarterly intervals. At the end of the preceding taxable year Z's accumulated E&P was $200. In the current taxable year, corporation Z broke even.

a. The first two quarterly installments of $50 to each shareholder are dividends

b. $25 of each quarterly distribution is a dividend to each shareholder

c. There are no dividends to either shareholder

d. None of the above