Question - Steve and Tony each own 50% of Avenge, This, Inc., a calendar year corporation. At the end of June, Steve sell his shares to Hank Pym for $110,000. On January 1, the corporation had accumulated E & P of $200,000. Its current E & P is $250,000 (prior to any distributions). Avenge distributed $260,000 on April 15 ($130,000 to Steve and $130,000 to Tony). On November 9, it distributed another $260,000 on ($130,000 to Tony and $130,000 to Hank). What are the tax implications of the $130,000 distribution to Hank?