JAS Corporation was formed in 1986. It properly elected S corporation status on January 1, 2018 when it had earnings and profits of $20,000. In 2018, JAS earned $20,000 and distributed $50,000 on December 20, 2018. JAS was founded by its sole shareholder, J. A. Stephens. His basis in JAS stock on January 1, 2018 was $8,000. How much capital gain will Stephens recognize from the distribution? 

Answer rating: 100% (QA)

Heres the breakdown Accumulated Earnings and Profits AAEP AAEP at the beg... View the full answer