Lone Star Company is a calendar$-$year corporation, and this year Lone Star reported $$100,000$ in current E$\backslash$&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E$\backslash$&P was $$12,000.$ At the beginning of the year, Lone Star's sole shareholder was Matt. Lone Star declared $$30,000$ in cash distributions on each of the following dates: April $1,$ July $1,$ October $1,$ and December $31.$a$.$ How much of the $$120,000$ in total distributions will be treated as dividends? b$.$ Suppose that Matt sold half of the shares to Chris on June $1$ for $$40,000.$ How much dividend income will Matt recognize this year? Answer is complete but not entirely correct. Dividend recognized c$.$ If Matt's basis in the Lone Star shares was $$7,000$ at the beginning of the year, how much capital gain will he recognize on the sale and distributions from Lone Star? Prepare a draft of Lone Start's Form $5452$ for this year.