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 4500 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 5 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

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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

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	4500
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

5. 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.