Question
Holbrook, a calendar year S corporation, distributes $15,000 cash to its only shareholder, Cody, on December 31. Codys basis in his stock is $20,000, Holbrooks
Holbrook, a calendar year S corporation, distributes $15,000 cash to its only shareholder, Cody, on December 31. Codys basis in his stock is $20,000, Holbrooks AAA balance is $8,000, and Holbrook holds $2,500 AEP before the distribution.
a.) How is the distribution treated for tax purposes?
b.) What is Codys ending stock basis?
c.) What are Holbrooks ending AAA and AEP balances?
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Implementing Change With Clinical Audit
Authors: Richard W. Baker, Hilary M. Hearnshaw, Noelle Robertson
1st Edition
0471982571, 978-0471982579
