Nomad Corporation (a calendar year, accrual basis taxpayer) had the following transactions in 2021: Taxable Income Federal Income Tax Liability Paid Tax-Exempt Interest Income Excess of Capital Loss over Capital Gains Section 179 Expense elected in 2021 Dividends Received from Domestic Corporation (less than 20% owned) MACRS Depreciation deduction Straight-line depreciation using ADS class lives $295,000 69,300 3,000 7,000 15,000 40,000 18,000 10,000 Compute Nomad's E & P for tax year 2021 PART 2: On June 30th, Nomad Corporation distributes $100,000 to Jack and Jill, who each own 50% of the corporation. At the beginning of the current year, Nomad corporation has a deficit in accumulated E&P of $(53,000). Using the figure for current E&P that you calculated for Nomad Corporation, determine the tax treatment of distribution for the shareholders. (assume each shareholder has adequate basis in the corporation)