This year, Sooner Company reports current E&P of negative $300,000. Its accumulated E&P at the beginning of the year was $200,000. Sooner distributed $400,000 to its sole shareholder, Boomer Wells, on June 30 of this year. Boomers tax basis in his Sooner stock is $75,000. (Leave no answer blank. Enter zero if applicable. Negative amounts should be indicated by a minus sign.)

a. How much of the $400,000 distribution is treated as a dividend to Boomer?

Dividend

c. What is Sooners balance in accumulated E&P on the first day of next year?

Balance in accumulated E & P