Hi! I was wondering why the answer to this problem is D.

Monie, an individual taxpayer, owns 50% of Monie & Co, an S corporation. At the beginning

of the tax year, Monies basis in Monie & Co stock was $55,000. During the

year, Monie & Co realized ordinary loss in the amount of $45,000 and a short-term

capital loss of $15,000. Monie & Co made total distributions of $70,000 to its shareholders

during this taxable year. What amount of the $70,000 distribution is taxable to

Monie?

a. $70,000

b. $35,000

c. $25,000

d. $10,000