Mary is a shareholder in Sheets, Inc , 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 a $6,000 cash distribution from Sheets 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 Sheets 's AAA, on Sheets 's AEP, and on Mary 's stock basis

Question: Mary is a shareholder in Sheets, Inc., a calendar year S corporation. At the beginning of the year, her stock basis is $10,000, her share

Mary is a shareholder in Sheets, Inc., a calendar year S 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 a $6,000 cash from Sheets.
Mary's share of S 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 Sheets's AAA, on Sheets's AEP, and on Mary's stock basis.

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