please provide explanation with the correct option

X Corporation distributed 510.000 to Andy, its sole shareholder, on May' 1, 2020. Andy's stock basis in X Corporation. before adjusting for the 2020 distribution. was 53,000. X Corporation had a deficit in accumulated E & P of 515,000 on Januaryr l. 2020. X Corporation had a 55,000 loss as of December 31. 2020 [incurred evenly.r throughout the year}. Based on this information, refinish"r will report: a. Dividend income of $2,000 and $8,000 return of capital b. Return of capital of $2,000 and $8,000 dividend income. c. Dividend income of $5,000 and return of capital of 85,000. d. Dividend income of 510.000 and capital gain of zero. e. None of the above.