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Holbrook, a calendar years corporation, distributes $158,800 cash to its only shareholder, Cody, on December 31. Cody's basis in his stock is $190,560, Holbrook's AAA
Holbrook, a calendar years corporation, distributes $158,800 cash to its only shareholder, Cody, on December 31. Cody's basis in his stock is $190,560, Holbrook's AAA balance is $71,460, and Holbrook has $23,820 AEP before the distribution. According to the distribution ordering rules, complete the chart below to indicate how much of the $158,800 is from AAA and AEP as well as how Cody's stock basis is affected. If an amount is zero, enter "0". Distribution from Account Effect on Stock Basis Basis in Stock Beginning stock basis $190,560 From AAA account From AEP account From Cody's stock basis III III Ending stock basis
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