CSU, Inc., is a calendar year S corporation. CSUs Form 1120S shows nonseparately stated ordinary income of $120,000 for the year. Taewon owns 30% of the CSU stock throughout the year. The following information is obtained from the corporate records.

Tax-exempt interest income	$4,500
Salary paid to Taewon	(78,000)
Charitable contributions	(9,000)
Dividends received from a non-U.S. corporation	7,500
Short-term capital loss	(9,000)
Depreciation recapture income	16,500
Refund of prior state income taxes	7,500
Cost of goods sold	($108,000)
Long-term capital loss	(10,500)
Administrative expenses	(27,000)
Long-term capital gain	21,000
Selling expenses	(16,500)
Taewons beginning stock basis	48,000
Taewons additional stock purchases	13,500
Beginning AAA	46,500
Taewons loan to corporation	30,000

1. Assume all facts remain the same and CSU had previously been a C corporation and had 60,000 of E&P. Show the effect, if any, of the distribution on Taewons stock basis, ending AAA, ending E&P. Show also the taxability, if any, of the distribution to Taewon. HINT: calculate the allocation of AAA to Taewon for distribution computations, even though AAA is a corporate account.