Queen owns 100% of Royal Corporation. Royal Corporation was originally formed as a C corporation but has since elected to be treated as an S corporation. At the end of 2020, before considering any distributions, Royal Corporation's accumulated adjustments account (AAA) balance was $55,000 and its accumulated earnings and profits from its years as a C corporation was $20,000. On December 31, Royal Corporation distributed $80,000 to Queen.

a) What is the amount and character of income Queen must recognize on the distribution if her stock basis before considering the distribution was $100,000?

b) What is Queen's stock basis after accounting for the distribution?