Wendy and David,equal Shareholders in Loon Corporation,receive $300,000 Each in Distributions

Wendy and David,equal shareholders in Loon Corporation,receive $300,000 each in distributions on December 31 of the current year.Loon's current year E & P is $500,000 and it has no accumulated E & P.Last year,Loon sold an appreciated asset for $600,000 (basis of $200,000) .Payment for one half of the sale of the asset was made this year.How much of Wendy's distribution will be taxed as a dividend?

A) $0.
B) $150,000.
C) $250,000.
D) $300,000.
E) None of the above.