At the beginning of the current year, Maple Corporation (a calendar year taxpayer) has accumulated E & P of $140,000. During the year, Maple incurs a $120,000 loss from operations that accrues ratably. On July 1, Maple distributes $85,000 in cash to Asya, its sole shareholder. Assume Asya has sufficient basis for the distribution. How is Asya taxed on the distribution? Of the $85,000 distribution, ($fill in the blank 1) is taxed as a dividend and ($fill in the blank 2) represents a return of capital.

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