Maple Corporation, a calendar-year corporation, was formed three years ago by its sole shareholder, Jian, who immediately elected S corporation status. On December 31 of the current year, Maple distributed $39,500 cash to Jian.

What are the amount and character of gain Jian must recognize on the distribution in each of the following alternative scenarios?

Note: Leave no answer blank. Enter zero if applicable. If the answer is "0", select "None".

a. At the time of the distribution, Jian's basis in his Maple Corporation stock was $46,400.

Gain:

b. At the time of the distribution, Jian's basis in his Maple Corporation stock was $12,750.

c. At the time of the distribution, Jian's basis in his Maple Corporation stock was $0.