Suppose at the Beginning of 2018, Jamaal's Basis in His

Multiple Choice

Suppose at the beginning of 2018, Jamaal's basis in his S corporation stock is $1,000, and he has a $10,000 debt basis associated with a $10,000 loan he made to the S corporation. In 2018, Jamaal's share of S corporation income is $4,000, and he received a $7,000 distribution from the S corporation. How much income does Jamaal report in 2018 from these transactions?

A) $0.
B) $4,000.
C) $6,000.
D) $7,000.
E) None of the choices are correct.