Exit Corporation has accumulated E&P of $24,000 at the beginning of the current tax year. Current E&P is $20,000. During the year, the corporation makes the following distributions to its sole shareholder who has a $22,000 basis for her stock.

Date	Amount Distributed
April 1	$20,000
June 1	20,000
August 1	15,000
November 1	5,000

The treatment of the $15,000 August 1 distribution would be

Group of answer choices

$5,000 is taxable as a dividend from current E&P, and $10,000 is tax-free as a return of capital.

$15,000 is taxable as a dividend from accumulated E&P.

$4,000 is taxable as a dividend from accumulated E&P, and $11,000 is tax-free as a return of capital.

$15,000 is taxable as a dividend; $5,000 from current E&P and the balance from accumulated E&P.