Problem 13-14 (Algorithmic) (LO. 1, 3) Chang Corporation is a calendar year taxpayer. At the beginning of the current year, Chang holds accumulated E & P of $226,400. The corporation incurs a deficit in current E & P of $316,960 that accrues ratably throughout the year. On June 30, Chang distributes $135,840 to its sole shareholder, Libby. If Libby's stock has a basis of $22,640, how is she taxed on the distribution? Taxable dividend income in the amount of $ Return of capital in the amount of $ Capital gains in the amount of $