ABC Corporation's Beginning Balance of Accumulated Earnings and Profits Is

ABC Corporation's beginning balance of accumulated earnings and profits is a deficit of $100,000 and had current earnings and profits of $20,000.On March 1, the corporation distributed $45,000 to its sole shareholder, R, who had a basis in his stock of $30,000.R will report

A) No dividend income and a capital gain of $15,000
B) A dividend of $20,000
C) A dividend of $20,000 and a capital gain of $25,000
D) No dividend income and a capital gain of $25,000
E) None of the above