Packman a calendar-year corporation, which began business 15 years ago, had accumulated earnings and profits on January 1 of the current year of 60,000. Packman had an operating loss of 45,000 for the first 6 months of the year but had earnings and profits of 5,000 for the entire year. A distribution of 20,000 was made to the shareholders on July 4. Whats is the proper tax treatment of the distribution to the individual shareholders?

A. 20,000 ordinary dividend

B. 5,000 ordinary dividend

C. 15,000 ordinary dividend and 5,000 return of capital

D. it is a nontaxable transaction