Question: Exercise 12-16 (Algorithmic) (LO. 7) Holbrook, a calendar year S corporation, distributes $55,900 cash to its only shareholder, Cody, on December 31. Cody's basis

Exercise 12-16 (Algorithmic) (LO. 7) Holbrook, a calendar year S corporation, distributes

Exercise 12-16 (Algorithmic) (LO. 7) Holbrook, a calendar year S corporation, distributes $55,900 cash to its only shareholder, Cody, on December 31. Cody's basis in his stock is $67,080, Holbrook's AAA balance is $25,155, and Holbrook has $8,385 AEP before the distribution. According to the distribution ordering rules, complete the chart below to indicate how much of the $55,900 is from AAA and AEP as well as how Cody's stock basis is affected. If an amount is zero, enter "0". Distribution from Effect on Basis in Stock Account Stock Basis Beginning stock basis $67,080 From AAA account From AEP account From Cody's stock basis Ending stock basis.

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