Jayhawk Company reports current E&P of $350,000 and accumulated E&P of negative $200,000. Jayhawk distributed $400,000 to its sole shareholder, Christine Rock, on the last day of the year. Christines tax basis in her Jayhawk stock is $75,000. How much of the $400,000 distribution is treated as a dividend to Christine?

Paladin, Inc. reported taxable income of $1,000,000 this year and paid federal income taxes of $210,000. The company reported a capital gain from sale of investments of $150,000, which was partially offset by a $110,000 net capital loss carryover from last year, resulting in a net capital gain of $60,000 included in taxable income. Compute the companys current E&P.