9 At the end of the year before distributions, Bombay (an S corporation) has an accumulated adjustments account balance of $16,000 and accumulated E&P of $21,250 from a previous year as a C corporation. During the year, Nicolette (a 40 percent shareholder received a $21,250 distribution (the remaining shareholders received $31,875 in distributions). (Assume her stock basis is $12.500 aller considering her share of Bombay's income for the year but before considering the effects of the distribution) Required: a. What is the amount and character of gain Nicolette must recognize from the distribution? b. What is her basis in her Hombay stock at the end of the year? Character Amount a. b. Das enne