Sena Corporation distributed $10,000 to Terry, its sole shareholder, on May 1, 2020. Terry's stock basis in Sena Corporation, before adjusting for the 2020 distribution, was $8,000. Sena Corporation had accumulated E & P of $20,000 on January 1, 2020. Sena Corporation had a loss of $30,000 during the period January 1 - June 30, but total year profits as of December 31, were $5,000. Based on this information, Terry will report:

a. Dividend income of $10,000 and zero return of capital.b. Return of capital of $10,000 and zero dividend income.c. Dividend income of $5,000 and return of capital of $5,000.d. Dividend income of $5,000 and capital gain of $5,000.e. None of the above.

Sena Corporation distributed $10,000 to Terry, its sole shareholder, on May 1, 2020. Terry's stock basis in Sena Corporation, before adjusting for the 2020 distribution, was $8,000. Sena Corporation had accumulated E & P of $20,000 on January 1, 2020. Sena Corporation had a $36,000 loss as of December 31, 2020 (incurred evenly throughout the year).Based on this information, Terry will report:

a. Dividend income of $2,000 and $8,000 return of capital

b. Return of capital of $2,000 and $8,000 dividend income.

c. Dividend income of $5,000 and return of capital of $5,000.

d. Dividend income of $10,000 and capital gain of zero.

e. None of the above.

Sena Corporation distributed $10,000 to Terry, its sole shareholder, on May 1, 2020. Terry's stock basis in Sena Corporation, before adjusting for the 2020 distribution, was $8,000. Sena Corporation had a deficit in accumulated E & P of $30,000 on January 1, 2020. Sena Corporation had a $5,000 profit as of December 31, 2020.Based on this information, Terry will report:

a. Dividend income of $2,000 and $8,000 return of capital

b. Return of capital of $2,000 and $8,000 dividend income.

c. Dividend income of $5,000 and return of capital of $5,000.

d. Dividend income of $10,000 and capital gain of zero.

e. None of the above.

Sena Corporation distributed $10,000 to Terry, its sole shareholder, on May 1, 2020. Terry's stock basis in Sena Corporation, before adjusting for the 2020 distribution, was $8,000. Sena Corporation had a deficit in accumulated E & P of $15,000 on January 1, 2020. Sena Corporation had a $5,000 loss as of December 31, 2020 (incurred evenly throughout the year).Based on this information, Terry will report:

a. Dividend income of $2,000 and $8,000 return of capital

b. Return of capital of $2,000 and $8,000 dividend income.

c. Dividend income of $5,000 and return of capital of $5,000.

d. Dividend income of $10,000 and capital gain of zero.

e. None of the above.