QUESTION 13 During the year, Jane, the sole shareholder of a calendar year S corporation, received a distribution of $16,000. At the end of last year, her stock basis was $4,000. The corporation earned $11,000 ordinary income during the year. It has no accumulated E & P. Which statement is correct? a. Jane recognizes a $2,000 LTCG. b. Jane's stock basis is $2,000. Oc. Jane's ordinary income is $15,000. Od. Jane's tax-free return of capital is $15,000. QUESTION 14 Serena is the sole shareholder of an S corporation. At a time when her stock basis is $20,000, the corporation distributes appreciated property worth $100,000 (basis of $20,000). After these transactions, Serena's stock basis in her S Cororation is: Oa. $-0-. Ob. $10,000. Oc. $80,000. Od. $100,000. 2