49. Selfie Corporation was formed three years ago. Selfie's E&P history is as follows: Year 2016 Distribution Current E&P S $10,000 $5,000 7,000 6,000 2,000 2017 2018 Poppy Corporation's accumulated E&P on January 1 will be A) $0. B) $7,000. C) $8,000. D) $12,000. 50. Uno Corporation distributes $25,000 to its sole shareholder, Aru. At the time of the distribution, Uno's E&P is $10,000 and Aru's basis in her stock is $12,000 (Aru's stock has been held for 5 years). Aru's gain from this transaction is a A) $3,000 ordinary income. B) $3,000 capital gain. C) $13,000 ordinary income. D) $13,000 capital gain