Janna has a tax basis of $15,000 in her Mimikaki stock (Mimikaki has been an S corporation

Question:

Janna has a tax basis of $15,000 in her Mimikaki stock (Mimikaki has been an S since inception). In 2017, Janna was allocated $20,000 of ordinary income from Mimikaki. What is the amount and character of gain she recognizes from end of the year distributions in each of the following alternative scenarios, and what is her stock basis following each distribution?
a. Mimikaki distributes $10,000 to Janna
b. Mimikaki distributes $20,000 to Janna.
c. Mimikaki distributes $30,000 to Janna.
d. Mimikaki distributes $40,000 to Janna.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...