Electing Corp. was organized as a C corporation on June 12, 2005. On January 7, 2016, it filed an election to be taxed as a Subchapter S corporation. John Green acquired his stock on June 12, 2005 in exchange for $12,000. During the period June 12, 1995 through December 31, 2015 Electing Corp accumulated $18,500 of earnings and profits. Electing Corp distributed $9,500 to Green on December 31, 2016 and $18,500 to him on December 31, 2017. For the years ending 2016 and 2017 it had the following items of income and loss: 2016 2017 Income from operations $13,000 $6,000 Long-term Capital loss 0 4,000 Tax-exempt bond interest 2,500 3,500

a) What is Greens basis in his Electing Corp stock as of 12/31/16 (prior to considering the 2016 distribution)?

b) What is the balance in the corporations accumulated adjustment account as of 12/31/16 (prior to considering the 2016 distribution)?

c) What is the amount and character of the 2016 distribution?

d) What is Greens basis in his Electing Corp stock as of 12/31/17 (prior to considering the 2017 distribution)?

e) What is the balance in the corporations accumulated adjustment account as of 12/31/17 (prior to considering the 2017 distribution)?

f) What is the amount and character of the 2017 distribution?

g) Repeat parts (a) through (f) assuming that the 2016 distribution was equal to $14,500 and the 2017 distribution was equal to $38,000.