On January 1, 2019, Bold Corporation (a calendar year taxpayer) has E&P of $30,000. Its Current year E&P is ($3,600). On December 31, 2019, the corporation distributes $40,000 to its sole shareholder, Naomi. Naomi had purchased his stock in Bold for $7,500, 4-years ago. Required: 1. How is the Distribution characterized by the Corporation 2. How much of the distribution must Naomi report as Capital Gains on her tax return