Hector formed H Corporation as a C corporation at the beginning of 2019. Hector was the sole shareholder of H Corporation. H Corporation reported 2019 taxable Income (and earnings and profits) of $150,000. At the beginning of 2020, H Corporation elected S corporation status. During 2020, H Corporation had a rough year, reporting an ordinary business Income of $10,000 and $3,000 of Interest income. H Corporation also distributed $25,000 to Hector. a. What is the amount and character of gain/income Hector must recognize on the distribution of any? b. What is the balance in H Corporation's accumulated adjustments account (AAA) at the end of 2020