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BBB Inc, a calendar year S Corporation has no accumulated earnings and profits (AEP). Dwight, an individual shareholder receives a cash distribution of $12,000. Dwights

BBB Inc, a calendar year S Corporation has no accumulated earnings and profits (AEP). Dwight, an individual shareholder receives a cash distribution of $12,000. Dwights basis in the stock is $9,500 and he has held the stock for five years. Compute the amount of capital gain income, if any, that Dwight will recognize on his personal income tax return because of the distribution from BBB Inc.

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