Module Seven Homework

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Miley decided to terminate the S corporation election of her solely owned corporation on October $17,2022($effective immediately$),$ in preparation for taking it public. Miley had previously elected S corporation status on January $1,2021.$ At the time of the election, the corporation had an accumulated adjustments account balance of $$165,000$ and $$462,500$ of accumulated Earnings and profit from prior C corporation years, and Miley had a basis in her $S$ corporation stock of $$146,250.$ During $2023,$ Miley's corporation reported $$0$ taxable income or loss. Also, during $2023$ the corporation made distributions to Miley of $$87,500$ and $$65,000.$

$01$:$45$:$38$

How are these distributions taxed to Miley assuming the following?

Note: Leave no answer blank. Enter zero if applicable. Enter N$/$A if not applicable.

b$.$ Both distributions are in cash. The first was paid on June $15,2023,$ and the second was paid on September $30,2023.$

$\backslash$table$[[,\backslash$table$[[$Amount$],[$Taxable$]],$Taxable as$],[$June $15,,$N$/$A$],[$September $30,,$Capital gain$]]$