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.

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?