Pink Corporation has accumulated E&P of $10,000 and current E&P of $30,000. On May 1st, Pink Corporation makes a $40,000 distribution to Sam and Dean (each own 50% of the corporation) and another distribution of $20,000 to the shareholders on November 1st. Both Sam and Dean have basis in their stock of $10,000 each. For the first distribution on May 1st, Dean will recognize:

a. $20,000 Dividend

b. $15,000 Dividend and $5,000 Return of Capital

c. $15,000 Dividend and $5,000 Capital Gain

d. $10,000 Dividend and $10,000 Return of Capital

e. $10,000 Dividend and $10,000 Capital Gain