Nirvana Corporation has accumulated E&P of $5,000, but a current deficit of $2,000. If Nick Normans, the sole shareholder, has a basis of $7,000 in his stock and receives a distribution of $13,000 in the beginning of the year, his gross income equals:

a. $0

b. $13,000

c. $6,000

d. $7,000

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