At the end of the year, before distributions, bombay (an s corporation) has an accumulated adjustments account balance of $20,000 and accumulated e& p of $26,250 from a previous year as a c corporation. during the year, nicolette (a 40 percent shareholder) received a $26,250 distribution (the remaining shareholders received $39,375 in distributions). (assume her stock basis is $52,500 after considering her share of bombay’s income for the year but before considering the effects of the distribution.) required: what is the amount and character of gain nicolette must recognize from the distribution? what is her basis in her bombay stock at the end of the year?