P has been a 100 percent shareholder a calendar year S corporation since 1998. At the beginning of 2012, P's stock basis is $20,000. At the end of 2003, she receives a cash distribution of $96,000. The appropriate balances and operating results are as follows:

AAA (1-1-2003)	$-108,000
E&P (1-1-2003)	45,000
Tax-exempt Income	12,000
Operating Income	208,000
Operating Expenses	78,000
Expenses for producing tax-exempt income	4,000

a) How much of the $96,000 is taxed to P in 2004?

b) Determine the AAA, E&P and stock basis balances after the distribution in 2003.