Your client has a stock basis in an S Corp of zero. The following items occurred: She received a distribution of 10 that was deemed to come from AAA. Her share of the corporate NOL is (4). Question 34 (0.5 points) Listen Is this distribution taxable to the shareholder, and if so, how? Ordinary income of 10. Dividend income of 10. No tax consequences. Capital gain of 10. What is the appropriate tax treatment of her share of the corporate NOL? No loss allowed but the (4) is suspended and carried forward. Capital loss (4). Ordinary loss (4). No loss allowed, loss is lost forever