The sole shareholder of an S corporation owned stock at the beginning of the taxable year which had a basis of 10,000. At the end of the year, non-separately stated items yielded net income of $50,000. There were long-term capital gains of $25,000 and a Section 1231 loss of $100,000 as separately stated items.

As of the beginning of the year, the corporation has a AAA account of 60,000 and C corporation E&P of 10,000.

During the year, the corporation distributed $100,000 to its sole shareholder.

WHAT ARE THE TAX CONSEQUENCES OF THE DISTRIBUTION TO THE SOLE SHAREHOLDER?