Elk Company reports negative current E&P of $200,000 and positive accumulated E&P of

$300,000. Elk distributed $200,000 to its sole shareholder, Barney Rubble, on December 31,

20X3. Barney's tax basis in his Elk stock is $75,000. What is the tax treatment of the distribution

to Barney and what is his tax basis in Elk stock after the distribution?