Harvey Inc. has a Current E&P balance of ($100,000) earned ratably throughout the current year. Accumulated E&P is $70,000. Harvey has 2 sharholders (Finn and Eliot) at 1/1, and the corporation pays these two shareholders an $80,000 dividend ($40,000 each) on 7/1. Finns basis in his stock is $25,000; Eliots basis in his stock is $30,000. How is this distribution treated for Finn and Eliot?