Question
Hollbrook a calendar year S Corp, distributes 15,000 cash to its only shareholder, Cody on December 31, 2020. Codys basis in his stock was 20,000.
Hollbrook a calendar year S Corp, distributes 15,000 cash to its only shareholder, Cody on December 31, 2020. Codys basis in his stock was 20,000. Holbrooks AAA account was 8,000, its AEP account was 6,500. How much income will Cody recognize due to the distribution? What are the balances in the AAA and AEP after the distribution? What is the basis in Codys stock after the distribution?
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People Centric Skills Interpersonal And Communication Skills For Financial Professionals
Authors: Danny M. Goldberg
2nd Edition
1119669308, 978-1119669302
