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D Question 3 6 pts Alberto owns 25 percent of Sycamore, an S corporation. At the beginning of the year, Alberto's basis in his
D Question 3 6 pts Alberto owns 25 percent of Sycamore, an S corporation. At the beginning of the year, Alberto's basis in his stock was $30,000, his share of Sycamore's accumulated adjustments account (AAA) was $25,000, and his share of Sycamore's earnings and profits from prior C corporation years (accumulated E&P) was $15,000. Then, during the year, Alberto was allocated $12,500 of ordinary income and Sycamore made a nonliquidating distribution to Alberto of $50,000. [part 1] How much of the distribution is taxable to Alberto as a dividend? [part 2] What is Alberto's basis in his Sycamore stock after the distribution?
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