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Johnella has been the sole (one hundred percent (100%)) shareholder of Carolyn Corporation, a calendar year S Corporation, since 1981. At the end of 2021,

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Johnella has been the sole (one hundred percent (100%)) shareholder of Carolyn Corporation, a calendar year S Corporation, since 1981. At the end of 2021, Johnella's basis in her stock is $15,500 and she receives a distribution of $19,000 from Carolyn Corporation. Corporate level accounts of Carolyn Corporation are as follow: Accumulated Adjustments Account (AAA) - $6,000; Previously Taxed Income (PTI) - $9,000; Accumulated Earnings And Profits (AEP) - $600. How is Johnella taxed on the distribution? O A $600 Taxable Dividend and a $2,000 Long-Term Capital Gain. O A $3,600 Taxable Dividend. O A $600 Taxable Dividend and a $2,900 Long-Term Capital Gain. O A$600 Taxable Dividend and a $2,500 Long-Term Capital Gain

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