On January 2, 2015, Tim loans his S corporation $10,000. By the end of 2015, Tims stock basis is zero, and the basis in his note has been reduced to $8,000. During 2016, the companys operating income is $10,000. The company makes 2016 distributions to Tim of $8,000. Tim reports a(n): a. $2,000 LTCG. b. $8,000 LTCG. c. Stock basis of $2,000. d. Loan basis of $10,000.