Question: This year, Jiang, the sole shareholder of a calendar year S corporation, received a distribution of $17,000. On December 31 of the prior year, his stock basis was $3,000. The corporation earned $12,000 ordinary income during the year. It has no accumulated E&P. Which statement is correct? Ignore the 20% QBI deduction. a. Jiang's return of capital is $11,000. b. Jiang's ordinary income is $15,000. c. Jiang's stock basis will be $2,000. d. Jiang recognizes a $2,000 LTCG.