Mulberry Corporation has an August 31 year-end. Mulberry had $50,000 in accumulated E & P at the beginning of its 2015 fiscal year (September 1, 2014) and during the year, it incurred a $75,000 operating loss. It also distributed $65,000 to its sole shareholder, Charles, on November 30, 2014. If Charles is a calendar year taxpayer, how should he treat the distribution when he files his 2014 income tax return (assuming the return is filed by April 15, 2015)? (Points : 5)

A. The distribution has no effect on Charles in the current year. B. $50,000 of dividend income and $15,000 recovery of capital. C. $60,000 of dividend income and $5,000 recovery of capital. D. $65,000 of dividend income. E. None of the above