Mellow Corporation is a calendar-year taxpayer. All the stock is owned by Sarah. Her basis in the stock is $35,000. On December 31 of the current year, Mellow distributes $70,000 to Sarah. Determine what is dividend, what is return of capital and what is capital gain on each of the following independent situations:

a. current E&P of $25,000; accumulated E&P of $50,000.

b. current E&P of $25,000; accumulated E&P of ($25,000)

c. current E&P of ($30,000); accumulated E&P of $65,000

d. current E&P of ($10,000); accumulated E&P of ($25,000) e. same as (c) except that the distribution is made on June 30th.