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Holbrook, a calendar year S corporation, distributes $62,200 cash to its only shareholder, Cody, on December 31 . Cody's basis in his stock is $74,640,
Holbrook, a calendar year S corporation, distributes $62,200 cash to its only shareholder, Cody, on December 31 . Cody's basis in his stock is $74,640, Holbrook's AAA balance is $27,990, and Holbrook has $9,330 AEP before the distribution. According to the distribution ordering rules, complete the chart below to indicate how much of the $62,200 is from AAA and AEP as well as how Cody's stock basis is affected. If an amount is zero, enter " 0
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