akeinprogress... ? Calculator Txercea 22-2 Algorithmic) (L0.6) Holbrook, a calendar year S corporation, distributes $47,500 ca rules, complete the chart below to indicate how much of the $47 If an amount is zero, enter "0". sh to its only shareholder, Cody, on December 31. Cody's basis in his stock brook's AAA balance is $21,375, and Holbrook has $7,125 AEP before the distribution. According to the distribution orderirng .500 is from AAA and AEP as well as how Cody's stock basis is affected. Distribution Charged Affect on Balance of item After Distribution Against Each ItemStock Basis From AAA Account From A CCo From Cody's stock basis 21,375 V -21,375 0 7,125 V 0 19,000 -19,000 Total distribution $47,500 Feedback Check My Work The amount of any distribution to an S corporation shareholder is equal to the cash plus the fair market value of any other property distributed. How the distribution is taxed depends upon whether the S corporation has C corporation accumulated earnings and profits (AEP Previous Next Check My Work 19