Elon is the sole shareholder of Tesla Corporation. Tesla Corporation was formerly a c corporation but is currently an S corporation. At the end of 2019, before considering distributions, Tesla Corporation's accumulated adjustments account (AAA) balance was $40,000 and its accumulated E&P from its years as a C corporation was $25,000. On July 1, Tesla Corporation distributed $85,000 to Elon. What is the amount and character of income Elon must recognize on the distribution if his stock basis before considering the distribution was $80,000? What is Elon's stock basis after accounting for the distribution