Ezra Corporation (a C corporation) reports current E&P of $120,000 in 2019 and a deficit of ($240,000) in accumulated E&P at the beginning of 2019. Ezra Corp. distributed $360,000 to its sole shareholder on January 1, 2019. The shareholder's tax basis in his Ezra Corp. stock is $120,000. How is the distribution treated by the shareholder in 2019? Multiple Choice $120,000 dividend, $120,000 tax-free return of basis, and $120,000 capital gain. $0 dividend, $120,000 tax-free return of basis, and $240,000 capital gain. $120,000 dividend and $240,000 tax-free return of basis. $360,000 dividend