18. During 2020, Sergio, the sole shareholder of a calendar year S corporation, received a distribution of $16,000. On January 1, 2020 his stock basis was $4,000 and the corporation had no accumulated earnings & profits. The corporation earned $11,000 ordinary income during 2020. Which statement is correct? O a) Sergio recognizes a $1,000 capital gain. b) Sergio recognizes a $12,000 capital gain. O c) Sergio's recovery of capital is $12,000. O d) Sergio's recovery of capital is $15,000. e) Responses a. and d. are both correct