Tally is the sole shareholder of an S corporation that was formerly a C corporation and switched to S corporation status. The corporation has $10,000 in its AAA (Accumulated Adjustments Account) and $20,000 of undistributed earnings and profits from its C corporation years. Her basis in stock is $40,000. Tally receives a $15,000 distribution from the corporation. SELECT ALL THE TRUE STATEMENTS FROM THE LIST BELOW!! the $15,000 distribution will be taxed as a dividend to Tally $10,000 of the distribution will not be taxable to Tally $5,000 of the distribution will be taxed as a dividend to Tally Her stock basis will be reduced by $15,000. Her stock basis will be reduced by $10,000.