Question: S corporation had been a C corporation ( E & P $20,000). The AAA account for the sole shareholder is $20,000. Shareholders basis in corporation

S corporation had been a C corporation ( E & P $20,000). The AAA account for the sole shareholder is $20,000. Shareholders basis in corporation is $20,000. Corporation distributes cash of $50,000. Explain the tax effect on the shareholder

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