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Martin Corporation's accumulated E&P Was ($500,000) at the beginning of the year and Martin Corporation reported current E&P of $200,000 this year. Martin distributed $400,000

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Martin Corporation's accumulated E\&P Was ($500,000) at the beginning of the year and Martin Corporation reported current E\&P of $200,000 this year. Martin distributed $400,000 cash to its sole shareholder, Craig, on the last day of the tax year. Craig's basis in his Martin Corporation stock before the distribution is $60,000. ( 6 points) 1. How much of the distribution is a dividend to Craig? 2. What is Craig's stock basis in Martin after the distribution? 3. How much of the distribution is a capital gain to Craig? If any of the answers are 0-, do not leave blank. Put 0

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