Eva has been the sole shareholder of a calendar year S-Corporation since its inception. Evas stock basis is $50,000, her debt basis is $15,000 and she receives a cash distribution of $88,000. There are no special elections made. All calculations must be shown. Answers containing words or paragraph, without calculations, will not be counted.

What is the tax impact of the distribution if the S-Corporation has accumulated adjustment account of $40,000, adjusted earning and profit of $30,000 and $0 other adjustment account before the distribution? Make sure to describe the $88,000 cash distribution.