Lone Star Company is a calendar-year corporation, and this year Lone Star reported $119,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Stars accumulated E&P was $14,280. At the beginning of the year, Lone Stars sole shareholder was Matt McCon. Lone Star declared $35,700 in cash distributions on each of the following dates: March 31, June 30, September 30, and December 31. (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.)

a. How much of the $142,800 in total distributions will be treated as dividends?

b. Suppose that Matt sold half of his shares to Chris Coop on June 1st for $49,500. How much dividend income will Matt recognize this year?

c. If Matts basis in his Lone Star shares was $7,950 at the beginning of the year, how much capital gain will he recognize on the sale and distributions from Lone Star?