1. An S corporation's only transaction for the year was the receipt of $10,000 in tax-exempt interest. How would a $6,000 distribution be taxed to the sole shareholder if the S corporation has an accumulated adjustments account of a negative $6,500 at the beginning of the year?

Answer rating: 100% (QA)

In this scenario you have an S corporation with a sole shareholder and only one transaction for the year which is the receipt of 10000 in taxexempt in... View the full answer