This is a corporate taxation question. I do not understand where they got 25% of the current E&P in the answer explanation. The answer and explanations are given so do not give me the answer

56. sole shareholder of Condor Corporation. She sold her stock to Melis the Glenda is Glenda's basis in Condor stock was $50,000 at the start of the year. Con s basis in Condor stock was $50,000 on. She sold her stock to Melissa.on October 31 for $150,000 at the start of the year. Condor distributed land to Glenda immediately before the sale. Condor's basis in the land Condor's basis in the land was $20,000 (fair market value of $25,000), On December 31, Melissa received a 375,000 cash distribution from Condor. During the year, Condor has $20,000 of current E & P and its accumulated E balance on January I is $10,000. Which of the following statements is true? a. Glenda recognizes a $110,000 gain on the sale of her stock b. Glenda recognizes a $100,000 gain on the sale of her stock c. Melissa receives $5,000 of dividend income. d. Glenda receives $20,000 of dividend income. e. None of the above. ANSWER RATIONALE Current E & P is allocated pro rata between the distributions Glenda receives 25% of the total dis amount of the distribution) Consequently 5% ofthe urrent & Pisa ocated to Glenda's distribution. Since accumulated E & P is allocated chronologically, the entire $10,000 is assigned to Glenda's distribution. Together with the current E & P allocation, Glenda has a $15,000 dividend and a $10,000 reduction in stock basis. As.a result, the sale of the stock creates a $110,000 gain ($150,000 sales price- a $40,000 basis ($50,000 basis reduced by $10,000 Melissa her dividend equals her share of current E & P, or S 15000 (75%S20 000 for the year (the land is red at its value of $25,000 in determining the basis recovery on distribution)] Because no accumulated E & P is allocated to