Elk Company reports a negative current E&P of $200,000 and a positive accumulated E&P of $300,000. Elk distributed $200,000 to its sole shareholder, Barney Rubble, on December 31, 2016. Barney's tax basis in his Elk stock is $75,000.

a. What is the tax treatment of the distribution to Barney and what is his tax basis in Elk stock after the distribution?

b. What if the distribution was paid on March 31, 2016?

ASAP, it will be appreciated