Pheasant Corporation, a calendar year accumulated E&P of $150,000. If Phe December 31. how much dividend 1 taxpayer, has $350,000 of current E & P and a deficit in heasant pays a $550.000 distribution to its shareholders on Idend income do the shareholders report 350,000 Since E&P is only 350000 the independent cases below, indicate the taxable portion and return of capital for each distribution. Accumulated E&P Beginning of Year Return of Capital Year-End Taxable Cash Distribution Amount $70,000 60000 30,000 30000 50,000 40000 Current E&P $20,000 20,000 40,000 a. S40,000 b. 40,000 c. (40,000) 10000 10000