Sparrow Corporation is a calendar year taxpayer. At the beginning of the current year, Sparrow has accumulated E \& P of $134,000. The enrnnration insurc a doficit in current E \& P of $187,600 that accrues ratably throughout the year. On June 30 , Sparrow distributes $80,400 Libby. If Libby's stock has a basis of $13,400, how is she taxed on the distribution? Taxable dividend income in the amount of $X Return of capital in the amount of $X. Capital gains in the amount of $X