Miles Nutt is the sole shareholder of a calendar year S corporation. At the beginning of the year, his stock basis was $4,000. During the year, he received a distribution of $16,000. The corporation earned $11,000 ordinary income during the year. It has no accumulated E & P. Which statement is correct?

		Nutt recognizes a $1,000 LTCG.
		Nutt's stock basis will be $2,000.
		Nutt's ordinary income is $15,000.
		Nutt's return of capital is $11,000.