Jack Slater is the sole shareholder of an S corporation. During 2018, Jack received a distribution of $20,000. His

basis in the stock at December 31, 2017 was $7,000. The S corporation earned ordinary income of $12,000 in 2018. The corporation had no accumulated E & P. What should be the amount of return of capital for Jack?

$19,000

$7,000

$12,000

$20,000

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