This is a Taxation Question

At the beginning of the current year, Chichi Corporation (a calendar year taxpayer) has accumulated E & P of $65,000. During the year, Chichi incurs a $120,000 loss from operations that accrues ratably. On May 1, Chichi distributes $40,000 in cash to Ryan, its sole shareholder.

How is Ryan taxed on the distribution?

Of the $40,000 distribution,___________$ is taxed as a dividend and $____________ represents a return of capital.