Question: Exercise 12-18 (Algorithmic) (LO. 6) Holbrook, a calendar year S corporation, distributes $79,000 cash to its only shareholder, Cody, on December 31. Cody's basis in

 Exercise 12-18 (Algorithmic) (LO. 6) Holbrook, a calendar year S corporation,

Exercise 12-18 (Algorithmic) (LO. 6) Holbrook, a calendar year S corporation, distributes $79,000 cash to its only shareholder, Cody, on December 31. Cody's basis in his stock is $94,800, Holbrook's AAA balance is $35,550, and Holbrook has $11,850 AEP before the distribution. According to the distribution ordering rules, complete the chart below to indicate how much of the $79,000 is from AAA and AEP as well as how Cody's stock basis is affected. If an amount is zero, enter "o". Distribution from Effect on Stock Basis Basis in Stock Account Beginning stock basis $94,800 From AAA account From AEP account II. From Cody's stock basis Ending stock basis

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