This year, Sooner Company reports current E&P of negative $376,000. Its accumulated E&P at the beginning of the year was $226,000. Sooner distributed $452,000 to its sole shareholder, Boomer Wells, on June 30 of this year. Boomers tax basis in his Sooner stock is $113,000.

a. How much of the $452,000 distribution is treated as a dividend to Boomer?

b. What is Boomers tax basis in his Sooner stock after the distribution?

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