Tonya is the 100% shareholder of a corporation established five years ago. It has always been an S corporation. After adjustment for this year's corporate income, but before taking distributions into account, Tonya has a $50,000 stock basis. The corporation pays Tonya a $60,000 cash distribution. As a result of this distribution, Tonya will have an ending stock basis and recognize income of

A.

Income recognized	Stock basis
$60,000	$50,000

B.

Income recognized	Stock basis
$0	$0

C.

Income recognized	Stock basis
$10,000	$0

D.

Income recognized	Stock basis
$10,000	$50,000