accumulations: Earl organized Crawford Corporation five years ago and has continued to own all its stock. The corporation made an S election one year after its incorporation. At the beginning of the current year, Crawford reports the following earnings (Click the icon to view the earnings accumulations.) Earl's basis in his Crawford stock on January 1 of the current year is $80,000. During the current year, Crawford reports the following results from its operations: (Click the icon to view the results from operations.) Crawford makes a $40,000 cash distribution to Earl on August 8 Read the requirements. Requirements a and b. What income, gain, or loss (if any) do Crawford and Earl recognize as a result of the distribution? What is Earl's basis in the Crawford stock on December 31? Begin by selecting the labels (in order), then compute Earl's basis in the Crawford stock on December 31. (Use parentheses or a minus sign for a decrease to basis. If an input field is not used, leave the input field(s) empty. Do not select a label or enter a zero.) Beginning balance Predistribution balance Ending balance Data table Data table Ordinary income $ 60,000 Accumulated adjustments account (AAA) $ Accumulated E&P 60,000 20,000 Tax-exempt interest income Long-term capital loss 18,000 50,000 Print Done Print Done