Malin,a 51% Owner of an S Corporation,has a Stock Basis

Malin,a 51% owner of an S corporation,has a stock basis of zero at the beginning of the year.Malin's basis in a $30,000 loan made to the S corporation and evidenced by a corporate note has been reduced to zero by pass-through losses.During the year,her net share of corporate ordinary income is $12,000.At the end of the year,Malin receives a $14,000 distribution.Determine any taxable income from the distribution.

A) $2,000 capital gain.
B) $2,000 ordinary income.
C) $12,000 ordinary income.
D) $14,000 ordinary income.