This year LH Company reports a deficit in current E&P of ($720,000) that accrued evenly throughout the year. At the beginning of the year, LH's accumulated E&P was $600,000. LH distributed $400,000 to its sole shareholder, Mark, on September 30 of this year. Mark's tax basis in his LH stock before the distribution was $100,000. How much of the $400,000 distribution is treated as a dividend to Mark? What is Mark's tax basis in his LH stock after the distribution? What is LH's balance in accumulated E&P on the first day of next year?