Tiger Company, a calendar year corporation, reports a deficit in current E&P of negative ($500,000) this year and positive accumulated E&P at the beginning of the year of $300000. Tiger distributed $250000 to its sole shareholder on June 30 of this year. How much of the distribution is treated as a return of capital this year if the shareholder has a $1 million adjusted basis in Tiger stock?

Multiple Choice

$500000

$50000

$200000

$0