Nell is the sole shareholder of Spy Corporation. Spy Corporation was formerly a C corporation but is currently an S corporation. At the end of 2019, before considering distributions, Spy Corporation's accumulated adjustments account (AAA) balance was $35,000 and its accumulated E&P from its years as a C corporation was $10,000. On July 1, Spy Corporation distributed $60,000 to Nell. a. What is the amount and character of income Nell must recognize on the distribution if her stock basis before considering the distribution was $60,000 (blank 1)? b. What is Nell's stock basis after accounting for the distribution (blank 2)