Question: During 2 0 1 4 , Miles Nutt, the sole shareholder of a calendar year S corporation, received a distribution of $ 1 6 ,

During 2014, Miles Nutt, the sole shareholder of a calendar year S corporation, received a distribution of $16,000. On December 31,2013, his stock basis was $4,000. The corporation earned $11,000 ordinary income during the year. It has no accumulated E & P. Which statement is correct?
a. Nutt recognizes a $1,000 LTCG
b. Nutt's stock basis will be $2,000
c. Nutt's ordinary income is $15,000
d. Nutt's return of capital is $11,000
e. None of the above
During 2 0 1 4 , Miles Nutt, the sole shareholder

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