Required information Problem $7-40($LO $7-2)($Algo$)[$The following information applies to the questions displayed below.$]$ Lone Star Company is a calendar$-$year corporation, and this year Lone Star reported $\backslash$$$102,000$ in current E$\backslash$&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E$\backslash$&P was $\backslash$$$12,240.$ Lone Star declared $\backslash (\backslash$$ $30,600\backslash )$ in cash distributions on each of the following dates: April $1,$ July $1,$ October $1,$ and December $31.$ Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. Problem $7-40$ Part b $($Algo$)$ Suppose that Matt owned all Lone Star's shares at the beginning of the year and sold half of the shares to Chris on June $\backslash (1^\{\backslash$text $\{$st $\}\}\backslash )$ for $40,800.$ How much dividend income will Matt recognize this year? Required information

Problem $7-40($LO $7-2)($Algo$)$

$[$The following information applies to the questions displayed below.$]$

Lone Star Company is a calendar$-$year corporation, and this year Lone Star reported $\backslash (\backslash$$ $102,000\backslash )$ in current E$\backslash$&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E$\backslash$&P was $\backslash (\backslash$$ $12,240\backslash ).$ Lone Star declared $\backslash (\backslash$$ $30,600\backslash )$ in cash distributions on each of the following dates: April $1,$ July $1,$ October $1,$ and December $31.$

Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.

Problem $7-40$ Part a $($Algo$)$

How much of the $\backslash (\backslash$$ $122,400\backslash )$ in total distributions will be treated as dividends? Required information

Problem $7-40($LO $7-2)($Algo$)$

$[$The following information applies to the questions displayed below.$]$

Lone Star Company is a calendar$-$year corporation, and this year Lone Star reported $\backslash (\backslash$$ $102,000\backslash )$ in current E$\backslash$&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E$\backslash$&P was $\backslash (\backslash$$ $12,240\backslash ).$ Lone Star declared $\backslash (\backslash$$ $30,600\backslash )$ in cash distributions on each of the following dates: April $1,$ July $1,$ October $1,$ and December $31.$

Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.

Problem $7-40$ Part c $($Algo$)$

c$.$ If Matt's basis in the Lone Star shares was $\backslash (\backslash$$ $7,140\backslash )$ at the beginning of the year, how much capital gain will he recognize on the sale and distributions from Lone Star?