$[$The following information applies to the questions displayed below.$]$

Lone Star Company is a calendar$-$year corporation, and this year Lone Star reported $$128,000$ in current E&P that accrued

evenly throughout the year. At the beginning of the year, Lone Star's accumulated E&P was $$15,360.$ Lone Star declared

$$38,400$ in cash distributions on each of the following dates: April $1,$ July $1,$ October $1,$ and December $31.$

Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.

Problem $07-40$ Part b $($Algo$)$

b$.$ Suppose that Matt owned all Lone Star's shares at the beginning of the year and sold half of the shares to Chris on June $1^{st}$ for

$$51,200.$ How much dividend income will Matt recognize this year?

Dividend recognized

$$76,800$