Pink Eve Company reports current E&P of $300,000 this year and accumulated E&P at the beginning of the year of $200,000. Pink Eye distributed $400,000 to its sole shareholder, Jethro, on December 31 of this year. Jethro's tax basis in his Pink Eye stock before the distribution is $75,000. (2) How much of the $400,000 distribution is treated as a dividend to Jethro? (2) What is Jethro's tax basis in the Pink Eye stock after the distribution? (1) What is Pink Eye's balance in accumulated E&P as of January 1 of the next year?'