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Exercise 22-20 (Algorithmic) (LO. 6) Holbrook, a calendar year S corporation, distributes $64,300 cash to its only shareholder, Cody, on December 31. Cody's basis in
Exercise 22-20 (Algorithmic) (LO. 6) Holbrook, a calendar year S corporation, distributes $64,300 cash to its only shareholder, Cody, on December 31. Cody's basis in his stock is $77,160, Holbrook's AAA balance is $28,935, and Holbrook has $9,645 AEP before the distribution. According to the distribution ordering rules, complete the chart below to indicate how much of the $64,300 is from AAA and AEP as well as how Cody's stock basis is affected. If an amount is zero, enter "O". Effect on Distribution Charged Against Each Item Balance of Item After Distribution Stock Basis From AAA account $ $ From AEP account $ From Cody's stock basis $
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