XYZ Inc. was a C corporation through the end of year 6. Starting at the beginning of year 7, XYZ elected S corporation status. At the end of year 6, XYZ had accumulated earnings and profits (E & P) of $53,700. At the end of year 7, XYZ had a balance of $32,000 in its accumulated adjustments account (AAA). During year 8, XYZ had ordinary income of $15,300 and made distributions of $100,000. What amount of the distribution will be a nontaxable distribution out of S corporation earnings to the shareholders of XYZ at the end of year 8?

a. $1,000

b. $47,300

c. $52,700

d. $53,700