dividend income:

return of capital:

capital gain:

Stock basis after the distribution:

At the beginning of the year, Myrna Corporation (a calendar year taxpayer) has E \& P of $90,200. The corporation generates no additional E \& P during the year. On December 31 , the corporation distributes $135,300 to its sole shareholder, Abby, whose stock basis is $27,060. How is the distribution treated for tax purposes