X co. is an S corporation. X co.s accumulated adjustments account is $500,000. X co. has accumulated earnings and profits of $300,000. X co. makes a pro-rata cash distribution to shareholder H of $30,000. H is a 10% shareholder of X co. and has $70,000 basis in the X co. stock. How should H report the distribution? What if the distribution was for $160,000?