A Calendar Year Business Was Operated as a C Corporation $\$ 2,500$

A calendar year business was operated as a C corporation from 1998 through 2006, and as an S corporation since 2007.Its account balances at the end of 2011 are 1998-06 accumulated earnings and profits $\$ 2,500$
2007-10 accumulated adjustment account 1,000
2011 net ordinary income $\quad$ 2,200
2011 excludable interest income 800
2011 cash distributions to M4,500 M, the sole shareholder, had a basis in his stock of $4,000 at the beginning of 2011.M is single and has no other tax information.M's A.G.I.is

A) $4,500
B) $3,500
C) $2,600
D) $2,200
E) Some other amount, which is $__________________