Jayhawk Company reports current E&P of $402,500 and accumulated E&P of negative $327,500. Jayhawk distributed $450,000 to its sole shareholder, Christine Rock, on the last day of the year. Christines tax basis in her Jayhawk stock is $36,000. (Leave no answer blank. Enter zero if applicable. Negative amounts should be indicated by a minus sign.)

1.

value: 1.00 points

Required information

a. How much of the $450,000 distribution is treated as a dividend to Christine?