Peter is the sole shareholder in a calendar year S corporation. In 2021, his stock basis is $50,000, his share of the AAA is $ 11,000, and his share of corporate AEP is $ 16,000. He receives a $29,000 distribution, and his share of S corporation items includes a $ 12,000 long- term capital loss and a $ 18,000 ordinary income. Determine Peter’s ending balance in AAA, AEP, and stock basis. How much income, gain, or loss will Peter have from the above transactions in the S corporation? Be specific in terms of the amount of income (or loss) and the character of the income or loss. Peter notes, “It sure is great this is an S corporation because I know that I won’t get taxed on the $29,000 distribution. What will you tell Peter? Write one or two paragraphs explaining the tax implications of the S corporation transactions.