Problem 19-32 (Algorithmic) (LO. 1, 4)

At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of $365,000. Blue's current E & P is $219,000, and at the end of the year, it distributes $730,000 ($365,000 each) to its equal shareholders, Pam and Jon. Pam's stock basis is $51,100; Jon's stock basis is $204,400. How is the distribution treated for tax purposes?

If an amount is zero, enter "0".

Each shareholder has dividend income of $________. In addition, Pam has a reduction in stock basis to $and a capital gain of $_______. Jon has a reduction in stock basis to $________.