Estevez Corp. , a calendar -year corporation , was formed three years ago by its sole shareholder , Jasmine , who immediately elected S corporation status . On December 31 of the current year , Estevez distributed $30,000 cash to Jasmine . What are the amount and character of gain Jasmine must recognize on the distribution in each of the following alternative scenarios ? At the time of the distribution , Jasmine's basis in her Estevez Corp. stock was $35,000 .