Bernie is a shareholder in TimberLane, a calendar year S corporation. At the beginning of the year, his stock basis is $62,000, his share of the AAA is $13,000, and his share of corporate AEP is $38,000.

At the end of the year, Bernie receives from TimberLane a $31,000 cash distribution. Bernie's share of S corporation items includes a $10,000 long-term capital gain and a $68,000 ordinary loss.

Determine the effects of these events on TimberLane's AEP.