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, reported an ordinary business loss of $10,000, $4,000 of dividend income, and $7.000 of interest income. H Corporation also distributed $15,000 to Hector. a. What is the amount and character of gain/income Hector must recognize on the distribution (if any)? b. What is the balance in H Corporation's accumulated adjustments account (AAA) at the end of 2020