Rocky Corporation, an S corporation, reports the following results for the current year: Ordinary Income, $70,000 Long-term Capital Gain, $20,000 Municipal Bond interest income, $10,000 Domestic corporate dividends, $6,000, Charitable Contributions, $16,000 Rocky's AAA and accumulated E&P balances at the beginning of the year are $80,000 and $50,000, respectively. Rocky makes a $100,000 cash distribution to its sole shareholder on June 1 and a second $100,000 cash distribution on December 1. The shareholder's basis for Rocky stock on January 1 was $120,000. Discuss the consequences of these transactions (Refer to Chapter 11, S Corporations, S Corporations Distributions).