Hoosier Corporation declared a 2-for-1 stock split (shareholders received one share of stock for each share they already owned) to all shareholders of record on March 25 of this year. Hoosier reported current E&P of $600,000 and accumulated E&P of $3,000,000. The total fair market value of the stock distributed was $1,500,000. Barbara owned 1,000 shares of Hoosier stock with a tax basis of $100 per share.
c. Will Hoosier adjust its E&P for the stock dividend?