Player Corp distributed $120,000 to its shareholder in 20x1. Player's current E&P is $50,000, accumulated E&P is $20,000. At the start of the year, the shareholder's basis in her stock is $10.000.

Shareholder recognizes Capital gain of:

A)$120,000

B)$70,000

C)$50,000

D)$40,000

Shareholder basis at the end of the year:

A)$80,000

B)$50,000

C)$0

D)$10,000

Players E&P at the start of 20x2:

A)$0

B)$30,000

C)($40,000)

D)($50,000)