Question: ABC Corp., an S corporation, distributed $ 1 2 , 0 0 0 cash to its sole shareholder, Jack. Jack's basis in ABC stock at

ABC Corp., an S corporation, distributed $12,000 cash to its sole shareholder, Jack. Jack's basis in ABC stock at the beginning of the year was $40,000. In the current year, ABC reported a $30,000 loss. What amount of the cash distribution is taxable to Jack in the current year?
$2,000
$0
$12,000
None of the answers are correct.
ABC Corp., an S corporation, distributed $ 1 2 ,

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