Polly has been the sole shareholder of a calendar year S corporation since its inception. Polly's stock basis is $15,500, and she receives a distribution of $19,000. Corporate-level accounts indicate a $6,000 balance in AAA and a $500 balance in AEP. Determine Polly's tax treatment of the distribution: Tax-free amount Taxed as a dividend Taxed as capital gains What is her stock basis after the distribution