Charlie, Delta, and Echo are equal shareholders in CDE Corp., which has no E&P because it has
Question:
Charlie, Delta, and Echo are equal shareholders in CDE Corp., which has no E&P because it has been an S corporation since its inception. In Year 10, the corporation made pro rata non-liquidating operating distributions from its AAA (accumulated adjustments account) to each shareholder. Information about the assets distributed and each shareholder's basis in their S corporation stock before the distribution is provided below. Using the information provided, calculate the amount of gain or loss recognized by the S corporation and each of the shareholders (including any flow-through income or losses). For each shareholder, also calculate the shareholder's basis in the assets distributed to that shareholder and the shareholder's post-distribution basis in her S corporation stock. Enter the amounts in the table below. Enter gains as positive values and losses as negative values. If the amount is zero, enter a zero (0).
(Please provide calculations)
Federal Taxation 2021 Corporations, Partnerships, Estates & Trusts
ISBN: 9780135919460
34th Edition
Authors: Timothy J. Rupert, Kenneth E. Anderson, David S. Hulse