Wendy and David, equal shareholders in Loon Corporation, receive $300,000 each in distributions on December 31 of the current year. Loons current year E & P is $500,000 and it has no accumulated E & P. Last year, Loon sold an appreciated asset for $600,000 (basis of $200,000). Payment for one half of the sale of the asset was made this year. How much of Wendys distribution will be taxed as a dividend? Answer a. $0. b. $150,000. c. $250,000. d. $300,000. e. None of the above