H, an S Corporation, Has Net Ordinary Income from Sales

H, an S corporation, has net ordinary income from sales of its products of $5,000.During the year, H distributes $12,000 cash to P, its sole shareholder.P's basis in H stock, before the net ordinary income and cash distribution are considered, is $4,000 and H owes P $2,000.H has been an S corporation since it was formed.P has includible income from H of

A) $5,000 ordinary income and $6,000 capital gain
B) $5,000 ordinary income and $3,000 capital gain
C) $5,000 ordinary income and $1,000 capital gain
D) $11,000 ordinary income and zero capital gain
E) $8,000 ordinary income and zero capital gain