McLin, Inc., a calendar year S corporation, holds $90,000 of AEP. Tobias, the sole McLin shareholder, has

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McLin, Inc., a calendar year S corporation, holds $90,000 of AEP. Tobias, the sole McLin shareholder, has an $80,000 basis in his stock with a zero balance in the AAA.
a. Determine the tax aspects if a $90,000 salary is paid to Tobias.
b. Same as (a), except that Tobias receives a cash of $90,000 from AEP.
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...

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South Western Federal Taxation 2018 Essentials Of Taxation Individuals And Business Entities

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Question Posted: May 25, 2015 07:36 AM

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McLin, Inc., a calendar year S corporation, holds $90,000 of AEP. Tobias, the sole McLin shareholder, has

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a Tobias recognizes 90000 of ordinary income The corporation has ...View the full answer

South Western Federal Taxation 2018 Essentials Of Taxation Individuals And Business Entities

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