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Exercise 15-3 (Algorithmic) (LO. 5, 6) Holbrook, a calendar year S corporation, distributes $154,600 cash to its only shareholder, Cody, on December 31. Cody's
Exercise 15-3 (Algorithmic) (LO. 5, 6) Holbrook, a calendar year S corporation, distributes $154,600 cash to its only shareholder, Cody, on December 31. Cody's basis in his stock is $185,520, Holbrook's AAA balance is $69,570, and Holbrook has $23,190 AEP before the distribution. According to the distribution ordering rules, complete the chart below to indicate how much of the $154,600 is from AAA and AEP as well as how Cody's stock basis is affected. If an amount is zero, enter "0". Distribution from Effect on Basis in Stock Account Stock Basis Beginning stock basis $185,520 From AAA account 69,570 x From AEP account 0 23,190 0 From Cody's stock basis 61,840 V -61,840 -61,840 Ending stock basis 54,110 V Enarthark
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