15)

Steven, the sole shareholder of a calendar year S corporation, received a distribution of $17,000 in 2023. On December 31, 2022, his stock basis was $3,000. The corporation earned $12,000 ordinary income during 2022 and had no accumulated E&P. Which statement is correct?

Steven's stock basis will be $2,000 Steven's ordinary income is $15,000 Stevens return of capital is $11,000 Steven recognizes a $2,000 LTCG