Martin Corporation's accumulated E\&P Was($500,000)at the beginning of the year and Martin Corporation reported current E\&P of$200,000this year. Martin distributed$400,000cash to its sole shareholder, Craig, on the last day of the tax year. Craig's basis in his Martin Corporation stock before the distribution is$60,000. 1. How much of the distribution is a dividend to Craig? 2. What is Craig's stock basis in Martin after the distribution? 3. How much of the distribution is a capital gain to Craig? If any of the answers are−0-, do not leave blank. Put−0-

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