Suppose that at the beginning of 2021 Jamaal's basis in his S corporation stock is $1,000 and he has a $10,000 debt basis associated with a $10,000 loan he made to the S corporation. In 2021, Jamaal's share of S corporation income is $4,000, and he received a $7,000 distribution from the S corporation. How much total income does Jamaal report in 2021 from these transactions?

• $0

• $4,000

• $6,000

• $7,000

• None of the choices are correct.