Ron Miller is the sole shareholder of an S corporation. During 2018, Ron 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 capital gain for Ron?

$1,000

$8,000

$19,000

$27,000

Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"