Denise receives a distribution of $ 85,000 from , Gates Corporation , an S Corporation , in which she is the sole ( one hundred percent ( 100 ) ) shareholder Gates Corporation has an Accumulated Adjustments Account ( AAA ) of $ 25,500 and Accumulated Earnings And Profits ( AEP ) of $ 3,000 . Denise's basis in her stock in Gates Corporation is $ 26,000 . The amount of Capital Gain recognized by Denise as a result of this distribution is $ 56,000 TrueFalse