Maple Corp , a calendar year corporation, was formed three years ago by its sole shareholder, Brady, who immediately elected S corporation status On December 31 of the current year, Maple distributed $30,000 cash to Brady What is the amount and character of gain Brady must recognize on the distribu...

a Brady would recognize 0 gain and his stock basis would be reduced from 35000 to ...

Maple Corp., a calendar-year corporation, was formed three years ago by its sole shareholder, Brady, who immediately

Question:

Maple Corp., a calendar-year was formed three years ago by its sole shareholder, Brady, who immediately elected S status. On December 31 of the current year, Maple distributed $30,000 cash to Brady. What is the amount and character of gain Brady must recognize on the in each of the following alternative scenarios?
a. At the time of the Brady's basis in his Maple Corp. stock was $35,000.
b. At the time of the Brady's basis in his Maple Corp. stock was $8,000.
c. At the time of the Brady's basis in his Maple Corp. stock was $0.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...