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.
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help