During the year, Andrew, who is the sole shareholder of Big A, Inc., a qualified S-corp which reports on a calendar year basis, received a distribution from Big A of $80,000 in cash. The check was dated December 1 and delivered to Andrew the same day. Andrew had a basis in his Big A stock of $15,000 as of the first day of the year. Big A has no Accumulated Earnings and Profits from any prior year but did begin this year with a Balance in AAA of $9,000. Big A earned and reported $21,000 of ordinary income and $12,000 of long-term capital gain during the current year.

a)The K-1 Andrew receives from Big A will ask him to report what items on his tax return for the current year (excluding the cash distribution)?

b)Please provide a detailed calculation that shows how the $40,000 cash distribution to Andrew will be taxed?

c)Please provide a detailed calculation of Andrew's basis in his stock of Big A at year-end?