On January 1, Trumpeter, Inc. has accumulated E & P of $300,000. (Trumpeter reports on a calendar year). For the year, it has a net operating loss of $300,000. On June 30, Trumpeter distributes $160,000 to Don, its sole shareholder, who has a stock basis of $112,500. What is Don's stock basis after the distribution?
a. $0
b. $102,500
c. $112,500
d. $150,000
e. None of the above