LAMI Take-Home 16 Points Shadow, a calendar year S corporation, distributes $25,000 cash to its sole shareholder, Sophia on December 31, 2019. On January 01, 2019. Sophia's basis in her S corporation stock was $23.500 Shadow's AAA balance at the beginning of the year (Jan. 01) was $17.500. Shadows's records reflect the following information for the year (2019): Ordinary Income of $20,000 Charitable Contributions of $18,000 Dividends from a U.S. corporation of $20.000 Long-Term Capital gain of $19,000 Long-Term Capital loss of $23.000 Short-Term capital loss of $13,000 In addition, Shadow has $1,000 remaining AEP (Accumulated Earnings and Profits) from its conversion from a C corporation. How is Sophia taxed on this distribution and what is Sophia's basis in Shadow after the distribution? Explain your answer. LAMI Take-Home 16 Points Shadow, a calendar year S corporation, distributes $25,000 cash to its sole shareholder, Sophia on December 31, 2019. On January 01, 2019. Sophia's basis in her S corporation stock was $23.500 Shadow's AAA balance at the beginning of the year (Jan. 01) was $17.500. Shadows's records reflect the following information for the year (2019): Ordinary Income of $20,000 Charitable Contributions of $18,000 Dividends from a U.S. corporation of $20.000 Long-Term Capital gain of $19,000 Long-Term Capital loss of $23.000 Short-Term capital loss of $13,000 In addition, Shadow has $1,000 remaining AEP (Accumulated Earnings and Profits) from its conversion from a C corporation. How is Sophia taxed on this distribution and what is Sophia's basis in Shadow after the distribution? Explain your