Mavericks Inc. (C-corporation) reports a loss of $120,000 in current E&P and has positive accumulated E&P of $66,000. On April 30, 2021, It makes a cash distribution of $32,000 to Its sole shareholder, Julie. Julie has an outside basis in her stock of $8,000.

1. What amount of the cash distribution is treated as a dividend to Julie?

2.What amount of the cash distribution is treated as a return of Capital to Julie?

3. What amount of the cash distribution is treated as a capital gain to Julie?

4. What is Julie's adjusted tax basis in mavericks Inc after the distribution?

5. What is mavericks Inc's accumulated E&P at the beginning of the next year?