Question: Mary is a shareholder in CarrollCo a calendar year S

Mary is a shareholder in CarrollCo, a calendar year S corporation. At the beginning of the year, her stock basis is $10,000, her share of the AAA is $2,000, and her share of corporate AEP is $6,000.
At the end of the year, Mary receives from CarrollCo a $6,000 cash distribution. Mary’s share of S corporation items includes a $2,000 long-term capital gain and a $10,000 ordinary loss. Determine the effects of these events on Mary’s share of the entity’s AAA, her stock basis, and CarrollCo’s AEP.

View Solution:


Sale on SolutionInn
Sales8
Views674
Comments
  • CreatedSeptember 09, 2015
  • Files Included
Post your question
5000