Lebeck Industries, a qualified S corporation, has no accumulated earnings and profits. In Year 1, Lebeck Industries distributed property to Bob, its sole shareholder. It had a fair market value of $75,000 and an adjusted basis of $62,000. After recognizing his share of any corporate gain or loss, his adjusted basis in Lebeck Industries' stock at the end of the year was $60,000. How should Bob handle the distribution? A. $60,000 is a nontaxable distribution. B. $60,000 as return of capital and $15,000 as taxable capital gain. C. $60,000 as return of capital and $2,000 is taxable capital gain. D. $60,000 as return of capital and $15,000 is nontaxable distributions