Ling is the sole shareholder of Crimson Corporation (a C corporation). At a time when Crimson has a deficit in accumulated E & P of $90,000 and current E & P of $65,000, it distributes a cash dividend of $85,000. If Ling's basis in her stock is $15,000, what are the tax consequences of the distribution to Ling and Crimson? If an amount is zero, enter "O". a. How is the $85,000 cash dividend taxed to Ling? Dividend income Return of capital Capital gain b. What are the tax consequences of the distribution to Crimson Corporation? After the distribution Crimson Corporation's current E & P is $ and its accumulated E & P is $ Ling is the sole shareholder of Crimson Corporation (a C corporation). At a time when Crimson has a deficit in accumulated E & P of $90,000 and current E & P of $65,000, it distributes a cash dividend of $85,000. If Ling's basis in her stock is $15,000, what are the tax consequences of the distribution to Ling and Crimson? If an amount is zero, enter "O". a. How is the $85,000 cash dividend taxed to Ling? Dividend income Return of capital Capital gain b. What are the tax consequences of the distribution to Crimson Corporation? After the distribution Crimson Corporation's current E & P is $ and its accumulated E & P is $