Longhorn Company reports current E&P of $150,000 in 20x3 and a deficit of ($300,000) in accumulated E&P at the beginning of the year. Longhorn distributed $450,000 to its sole shareholder on January 1, 20X3. The shareholder's tax basis in his stock in Longhorn is $150,000. How is the distribution treated by the shareholder in 20X3? Multiple Choice O $450,000 dividend. $150,000 dividend, $150,000 tax-free return of basis, and $150,000 capital gain. $150,000 dividend and $300,000 tax-free return of basis. $0 dividend, $150,000 tax-free return of basis, and $300,000 capital gain