Longhorn Company reports current E&P of $140.000 in 20x3 and accumulated ESP the beginning of the year of negative $200,000 Longhorn distributed $420,000 to its sole shareholder on January 1, 20X3. The shareholder's tax basis in his stock in Longhom is $140,000. How is the distribution treated by the shareholder in 2003 Multiple Choice 0 $40.000 dividend 0 $140,000 didend SMO,000 tax free return of basis, and 50,000 capan 0 O $40.000 vidend and $280.000 de return of basis 0 0 $0 dividend, $10,000 t he return of basis, and $200.000 capital gain 0 Week 4 Application Assignment plication Assignment Help Save & E El Toro Corporation declared a common stock distribution to all shareholders of record on June 30, 20X3. Shareholders will receive 1 share of El Toro stock for each 2 shares of stock they already own, Raoul owns 340 shares of El Toro stock with a tax basis of $78 per share. The fal market value of the El Toro stock was $118 per share on June 30, 20X3. What are the tax consequences of the stock distribution to Raoul Multiple Choice O dividend income and a 50 dividend income and a tax basis is the new ck of 578 per share so died income and tax bush in the new lock of 552 per share 00 o $20 DG dividend and a tax basi