Bluebird Corporation has a deficit in accumulated E&P of $180,000. For 2014, it has current E&P of $120,000. On December 31, 2015, Bluebird distributes $135,000 to its sole shareholder, Cameron. Cameron has a basis of $60,000 in his stock in Bluebird Corporation. As a result of the distribution,

a. Cameron has dividend income of $135,000.

b. Cameron has dividend income of $60,000 and reduces his stock basis to zero, and has a capital gain of $15,000.

c. Cameron has dividend income of $120,000 and reduces his stock basis to $45,000.

d. Cameron has no dividend income [because netting AEP and CEP yields negative amount], reduces his stock basis to zero, and has a capital gain of $75,000.

e. None of the above statements are correct.