Holbrook, a calendar year S corporation, distributes $15,000 cash to its only shareholder, Cody, on December 31. Cody's basis in his stock is $20,000, Holbrook's AAA balance is $8,000, and Holbrook has $2,500 AEP before the distribution. According to the distribution ordering rules, complete the chart below.

CengageNOWv2 | Online teaching and learning resource from Cengage Learning Page 1 of 2 1. 2. 3. 4. 5. 6. 7. 8. 9. Exercise 22-20 (LO. 6) Holbrook, a calendar year S corporation, distributes $15,000 cash to its only shareholder, Cody, on December 31. Cody's basis in his stock is $20,000, Holbrook's AAA balance is $8,000, and Holbrook has $2,500 AEP before the distribution. According to the distribution ordering rules, complete the chart below. If an amount is zero, enter "0". Distribution from Account Affect on Stock Basis Balance after Distribution From AAA Account $ 8,00 $ $ From AEP Account $ $ $ From Cody's stock basis $ $ $ 0. 1. 2. http://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=assignments&takeAssignmentSessionLocator... 4/25/2017 CengageNOWv2 | Online teaching and learning resource from Cengage Learning Assignment Score: 53.89% Email Instructor All work saved. Page 2 of 2 Save and Exit Submit Assignment for Grading http://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=assignments&takeAssignmentSessionLocator... 4/25/2017