This year Bobcat Company reports a deficit in current E&P of ($200,000) that accrued evenly throughout the year. At the beginning of the year, Bobcats accumulated E&P was $200,000. Bobcat distributed $200,000 to its sole shareholder, Melanie Rushmore, on June 30 of this year. Melanies tax basis in her Bobcat stock before the distribution was $75,000. What is the tax treatment of the June 30th distribution? What is Melanies ending tax basis in her stock?