Holbrook, a calendar year S corporation, distributes $15,000 cash to its only shareholder, Cody, on December 31.

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Holbrook, a calendar year S corporation, distributes $15,000 cash to its only shareholder, Cody, on December 31. Cody’s basis in his stock is $20,000, Holbrook’s AAA balance is $8,000, and Holbrook holds $2,500 AEP before the distribution. Complete the chart below.

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South Western Federal Taxation 2018 Corporations Partnerships Estates And Trusts

ISBN: 1389

41st Edition

Authors: William H. Hoffman, William A. Raabe, James C. Young, Annette Nellen, David M. Maloney

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Question Posted: Sep 09, 2015 07:01 AM

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Holbrook, a calendar year S corporation, distributes $15,000 cash to its only shareholder, Cody, on December 31.

Question:

Distribution from Account Effect on Stock Basis Balance after Distribution From AAA Account From AEP Account From Cody's stock basis

Step by Step Answer:

A cash distribution from an S corporation with AEP comes first from the AAA l...View the full answer

South Western Federal Taxation 2018 Corporations Partnerships Estates And Trusts

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