Question: Problem 22-24 (a) (LO. 6, 8, 9) Bernie is a shareholder in Timberlane, a calendar years corporation. At the beginning of the year, his stock
Problem 22-24 (a) (LO. 6, 8, 9) Bernie is a shareholder in Timberlane, a calendar years corporation. At the beginning of the year, his stock basis is $62,000, his share of the AAA is $13,000, and his share of corporate AEP is $38,000. At the end of the year, Bernie receives from Timberlane a $31,000 cash distribution. Bernie's share of corporation items includes a $10,000 long-term capital gain and a $68,000 ordinary loss. Determine the effects of these events on Bernie's share of the entity's AAA, his stock basis, and Timberlane's AEP. If an item has no effect or an amount is zero, enter"0". Enter amounts as positive numbers. However, use the minus sign to indicate if a balance amount is negative. AAA Stock Basis AEP Beginning balance $13,000 $62,000 $38,000 Distribution 13,000 V 13,000 / Balance 0 LTCG 10,000 10,000 0 Balance 10,000 LOS 68,000 Ending balance 0
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