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Problem 19-32 (Algorithmic) (LO. 1, 4) At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of

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Problem 19-32 (Algorithmic) (LO. 1, 4) At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of $385,000. Blue's current E & P is $231,000, and at the end of the year, it distributes $770,000 ($385,000 each) to its equal shareholders, Pam and Jon. Pam's stock basis is $53,900; Jon's stock basis is $215,600. How is the distribution treated for tax purposes? If an amount is zero, enter "O". Pam has the following: Dividend income: $ Capital gain: Stock basis after distribution: $ Jon has the following: Dividend income: $ Capital gain: $ Stock basis after distribution: $

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