Question: Exercise 22-16 (Algorithmic) (LO. 6) Holbrook, a calendar year S corporation, distributes $39,100 cash to its only shareholder, Cody, on December 31. Cody's basis

Exercise 22-16 (Algorithmic) (LO. 6) Holbrook, a calendar year S corporation, distributes

Exercise 22-16 (Algorithmic) (LO. 6) Holbrook, a calendar year S corporation, distributes $39,100 cash to its only shareholder, Cody, on December 31. Cody's basis in his stock is $46,920, Holbrook's AAA balance is $17,595, and Holbrook has $5,865 AEP before the distribution. According to the distribution ordering rules, complete the chart below to indicate how much of the $39,100 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 $46,920 From AAA account 17,595 -17,595 0X From AEP account 5,865 X 0X 0 From Cody's stock basis Ending stock basis 39,100 X

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