Micaela Owns All the Shares of the Madison Corporation That

Multiple Choice

Micaela owns all the shares of the Madison Corporation that operates as an S corporation.Micaela's basis in the stock is $40,000.During the year she receives a cash distribution of $10,000 from Madison.What must Micaela and Madison report as income from the cash distribution?
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Micaela Madison

A) $-0- $-0-
B) $10,000 $-0-
C) $-0- $10,000
D) $10,000 $10,000