This year Sooner Company reports current E&P of negative $426,000 and accumulated E&P at the beginning of the year was $264,000. Sooner distributed $528,000 to its sole shareholder, Boomer Wells, on June 30. Boomers tax basis in his Sooner stock is $124,500.

A)How much of the $528,000 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?