Holbrook, a calendar year S corporation, distributes $15,000 cash to its only shareholder, Cody, on December 31.
Question:
Holbrook, a calendar year S corporation, distributes $15,000 cash to its only shareholder, Cody, on December 31. Cody’s basis in his stock is $20,000, Holbrook’s AAA balance is $8,000, and Holbrook holds $2,500 AEP before the distribution. Complete the chart below.
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Distribution from Account Effect on Stock Basis Balance after Distribution From AAA Account From AEP Account From Cody's stock basis
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Related Book For
South Western Federal Taxation 2018 Corporations Partnerships Estates And Trusts
ISBN: 1389
41st Edition
Authors: William H. Hoffman, William A. Raabe, James C. Young, Annette Nellen, David M. Maloney
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