Maddie owns 100% of the stock in Purple Corporation (c corporation) and is actively involved in the business. 

Purple Corporation had accumulated earnings and profits of $51,000 on Jan. 1, 2020. 

Maddie’s basis in the stock on January 1st was $20,000. 

On Jan. 1, 2020, S corporation status was elected for Purple Corporation. 

During the year, Maddie contributed land in exchange for additional shares of stock. 

The land had a FMV of $55,000 and an adjusted basis of $53,000. 

The land was subject to a debt of $15,000. 

During 2020, Purple had ordinary business income of $70,000. 

Purple made a cash distribution to Maddie at the end of the year of $58,000. 

Determine the tax treatment for the distribution and Maddie’s basis at the end of the year (after the distribution). 

Determine the ending balance in AAA and AEP (after the distribution).