3. Corporation Z makes a distribution of 50,000 to Marco, its only shareholder, on July 1, 2021. Marco's basis in his Z stock is 20,000. Z's current year earnings and profits are a loss of (10,000) and its accumulated earnings and profits as of the end of 2020 was 45,000. How is the distribution of 50,000 taxed to Marco? a.50,000 is a dividend. b. 35,000 is a dividend and 15,000 is a reduction of basis. c.40,000 is a dividend and 10,000 is a reduction of basis. d.45,000 is a dividend and 5,000 is a reduction of basis