Hal's Construction, Inc, was organized as a C corporation on January 1, 2022. During the year, the company distributed $50,000 in shareholder dividends. Choose the response that accurately describes the consequences of this distribution. Hal's Construction will: Increase its earnings and profits by the amount distributed. Include the distribution in taxable income subject to the 21% corporate income tax rate. Recognize a capital gain on the distribution. Reduce taxable income by the total $50,000 distributed. Mark for follow up