Miley decided to terminate the S corporation election of her solely owned corporation on October 17, 2019 (effective immediately), in preparation for taking it public. Miley had previously elected S corporation status on January 1, 2018. At the time of the election, the corporation had an accumulated adjustments account balance of $195,000 and $487,500 of accumulated E&P from prior C corporation years, and Miley had a basis in her S corporation stock of $168,750. During 2020, Mileys corporation reported $0 taxable income or loss. Also, during 2020 the corporation made distributions to Miley of $102,500 and $75,000. How are these distributions taxed to Miley assuming the following? (Leave no answer blank. Enter zero if applicable. Enter N/A if not applicable.)

a. Both distributions are in cash. The first was paid on June 15, 2020, and the second was paid on November 15, 2020.

b. Both distributions are in cash. The first was paid on June 15, 2020, and the second was paid on September 30, 2020.

C. The first distribution was a property (noncash) distribution (fair market value of distributed property equal to basis) and was paid on June 15, 2020; the second distribution was a cash distribution, and was paid on September 30, 2020