Problem 11-71 (LO 11-5) (Static) [The following information applies to the questions displayed below.] Pine Corporation, a calendar-year corporation, was formed three years ago by its sole shareholder, Alejandro, who has always operated it as a C corporation. However, at the beginning of this year, Alejandro made a qualifying S election for Pine Corporation, effective January 1. Pine Corporation reported $70,000 of C corporation earnings and profits on the effective date of the S election. This year (its first S corporation year), Pine Corporation reported business income of $50,000. Alejandro's basis in his Pine Corporation stock at the beginning of the year was $15,000. What are the amount and character of income or gain Alejandro must recognize on the following alternative distributions, and what is his basis in his Pine Corporation stock at the end of the year? Note: Leave no answer blank. Enter zero if applicable. Enter N/A if not applicable. Problem 11-71 Part a (Static) Alejandro received a $40,000 distribution from Pine Corporation at the end of the year