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Jerry, a U.S. Citizen, is a sole shareholder of S corporation, named Jerry Machine Tool Company. He has $5,000 basis in stock. Jerry also loaned

Jerry, a U.S. Citizen, is a sole shareholder of S corporation, named "Jerry Machine Tool Company". He has $5,000 basis in stock. Jerry also loaned money to S Corporation and has basis of $3,000. Assume no AEP, calendar year and beginning balance of AAA and OAA accounts are zero. The Corp. made $10,000 in the ordinary income which was reported on Jerrys K-1. Corp. also received a tax- free interest income of $4,000 which was also reported on K-1. Jerry took a distribution of $21,000 during the year from the S corporation. Please calculate the year-end balances in AAA account, OAA Account, Jerrys stock basis and loan basis showing the effects of the distribution. Please show all calculations.

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