On January $2,2019,$ David loans his S corporation $$10,000.$ By the end of $2019$ David$$s stock basis is zero and the basis in his note has been reduced to $$8,000.$ During $2020,$ the company$$s operating income is $$10,000.$ The company makes $2020$ distributions to David of $$11,000.$ David reports a$($n$)$:

$$ a$.$ $$1,000$ LTCG$.$

$$ b$.$ $$3,000$ LTCG$.$

$$ c$.$ $$11,000$ LTCG$.$

$$ d$.$ Loan basis of $$10,000.$