Module Seven Homework

Saved

Help

Save & Exit

Submit

$3$

$($

Part $3$ of $3$

$33\mathrm{.}34$

points

$801$:$44$:$53$

Required information

$[$The following information applies to the questions displayed below.$]$

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.$

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.

c$.$ The first distribution was a property $($noncash$)$ distribution $($fair market value of distributed property equal to basis$)$ and was paid on June $15,2022$; the second distribution was a cash distribution, and was paid on September $30,2022.$

$\backslash$table$[[,\backslash$table$[[$Amount$],[$Taxable$]],$Taxable as$],[$June $15,,],[$September $30,,]]$