D purchased all of the stock in SB, Inc., in 1980 for $76,000. On December 31 of the current year, SB, Inc., made a cash distribution of $135,000 to D. Assume SB, Inc., has current E&P of $15,000 and accumulated E&P of $40,000. 1) How much of the distribution is tax-free (nontaxable) to D? $_ 2) How much of the distribution is taxed as dividend income to D? _$_ 3) How much of the distribution is taxed as a capital gain distribution to D? $