Problem $15-18($LO$.4,5)$

McLin, Inc., is a calendar year S corporation. Its AAA balance is zero. Determine the tax aspects of the following transactions.

If an amount is zero, enter $"0".$

a$.$ McLin holds $$90,000$ of AEP. Tobias, the sole shareholder, has an adjusted basis of $$80,000$ in his stock. Tobias is paid a $$90,000$ salary. Ignore the $20\%$ QBI deduction.

Tobias recognizes $$90,000$ of ordinary income The corporation reports a $ deduction that passes through to

Tobias. Tobias' stock basis is $ and he holds a $ loss carryover.

b$.$ McLin holds $$90,000$ of AEP. Tobias, the sole shareholder, has an adjusted basis of $$80,000$ in his stock. McLin pays Tobias a $$90,000$ cash distribution from AEP.

Tobias recognizes $ of$.$ with deduction pass$-$through and has a $ stock basis. AEP is $?$