Gopher, Inc. has $$40,000$ of current E&P and $$50,000$ of accumulated E&P at the start of the year. The sole shareholder, Carl has a basis in his stock of $$10,000.$ If Gopher distributes $$60,000$ cash to Carl, it will be treated as a Blank$\_\_\_\_\_\_.$

Multiple choice question.

$$40,000$ dividend, $$10,000$ return of capital, and $$10,000$ capital gain

$$40,000$ dividend and $$20,000$ capital gain

$$60,000$ dividend

$$40,000$ dividend and $$20,000$ return of capital