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Holbrook, a calendar year S corporation, distributes $15,000 cash to its only shareholder, Cody, on December 31. Codys basis in

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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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South Western Federal Taxation 2016 Corporations Partnerships Estates And Trusts

South Western Federal Taxation 2016 Corporations Partnerships Estates And Trusts

ISBN: 9781305399884

39th Edition

Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young

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Question Posted: September 09, 2015 07:01:09
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