Mike owns 100% stock of BigTruck, Inc. His basis in the stock is $24,000. After several years of operation, BigTruck had $36,000 in accumulated E&P as of the start of the current year. During the current year, BigTruck had negative E&P of $32,000. On April 1 of the current year, BigTruck distributed $40,000 in cash to Mike. On July 1 of the current year, Mike sold half of his BigTruck stock to Mary for $50,000. On December 31 of the current year, BigTruck distributed $20,000 in cash to Mike and $20,000 in cash to Mary. How will Mike treat the$20,000 December 31 distributionfor tax purposes?

Group of answer choices

A. $20,000 dividend

B. $20,000 reduction in basis

C. $20,000 gain

D. $5,000 reduction in basis and $15,000 gain

E. $6,000 reduction in basis and $14,000 gain

F. $12,000 reduction in basis, and $8,000 gain

G. $12,000 dividend and $8,000 reduction in basis

H. $10,000 reduction in basis and $10,000 gain

I. None of the above are correct