Washington Corporation ended last year with a positive $10,000 accumulated E&P. However, this year things did not go so well and Washington Corporation lost money and had a deficit in E&P for the year of $9,000. Washington wants to give its sole shareholder a distribution of $1,000 on December 31. That shareholder has a basis of $3,000 in his stock. If Washington makes this distribution, will the distribution be considered a dividend to the shareholder even though the corporation had to report a loss for that year?