Required information

Problem 07-38 (LO 07-2) (Static)

[The following information applies to the questions displayed below.] This year, Sooner Company reports a deficit in current E&P of ($300,000). Its accumulated E&P at the beginning of the year was $200,000. Sooner distributed $400,000 to its sole shareholder, Boomer Wells, on June 30 of this year. Boomers tax basis in his Sooner stock before the distribution is $75,000. (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.)

Problem 07-38 Part a (Static)

a. How much of the $400,000 distribution is treated as a dividend to Boomer?