On January 1, 2020, Janna has a tax basis of $15,000 in her Mimikaki stock (Mimikaki has been an S corporation since inception). In 2020, Janna was allocated $20,000 of ordinary income from Mimikaki. What are the amount and character of gain she recognizes from end-of-the-year distributions in each of the following alternative scenarios, and what is her stock basis following each distribution?
a. Mimikaki distributes $10,000 to Janna.
b. Mimikaki distributes $20,000 to Janna.
c. Mimikaki distributes $30,000 to Janna.
d. Mimikaki distributes $40,000 to Janna.