On January 2,2014,Tim Loans His S Corporation $10,000

On January 2,2014,Tim loans his S corporation $10,000.By the end of 2014,Tim's stock basis is zero,and the basis in his note has been reduced to $8,000.During 2015,the company's operating income is $10,000.The company makes 2015 distributions to Tim of $8,000.Tim reports a(n) :

A) $2,000 LTCG.
B) $8,000 LTCG.
C) Stock basis of $2,000.
D) Loan basis of $10,000.