Thriller Corporation has one class of voting common stock, of which 1,000 shares are issued and outstanding. The shares are owned as follows:

Joe Jackson	400
Mike Jackson (Joes son)	200
Jane Jackson (Joes daughter)	200
Vinnie Price (unrelated)	200
Total shares	1,000

Thriller Corporation has current E&P of $400,000 for this year and accumulated E&P at January 1 of this year of $60,000. During this year, the corporation made the following distributions to its shareholders:

03/31: Distributed $100 per share to each shareholder ($100,000 in total).

06/30: Distributed $100 per share to each shareholder ($100,000 in total).

09/30: Distributed $100 per share to each shareholder ($100,000 in total).

12/31: Redeemed all of Vinnies shares for $250,000 in cash.

a. Determine the tax status of each distribution made this year.

b. Compute the corporations accumulated E&P at January 1 of next year. (Do not round intermediate calculations.)