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During 2011, Simon Kidman, the sole shareholder of a calendar year S corporation, received a...

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Accounting

During 2011, Simon Kidman, the sole shareholder of a calendar year S corporation, received a distribution of $75,000. On December 31, 2010, his stock basis was $24,000. The corporation earned $50,000 ordinary income during the year. It has no accumulated E & P. Which statement is correct?

Kidman's stock basis will be $2,000

Kidman's return of capital is $50,000

Kidman recognizes a $1,000 LTCG

Kidman's ordinary income is $64,000

None of the above

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