Maple Corp., a calendar-year corporation, was formed three years ago by its sole shareholder, Brady, who immediately elected S corporation status. On December 31 of the current year, Maple distributed $30,000 cash to Brady. What is the amount and character of gain Brady must recognize on the distribution in each of the following alternative scenarios? (Leave no answer blank. Enter zero if applicable.)

5.

value: 1.00 points

Required information

a. At the time of the distribution, Bradys basis in his Maple Corp. stock was $35,000.

References

eBook & Resources

ProblemDifficulty: 2 MediumLearning Objective: 22-05 Apply the tax rules for S corporation operating distributions and liquidating distributions.

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6.

value: 1.00 points

Required information

b. At the time of the distribution, Bradys basis in his Maple Corp. stock was $8,000.

References

eBook & Resources

ProblemDifficulty: 2 MediumLearning Objective: 22-05 Apply the tax rules for S corporation operating distributions and liquidating distributions.

Check my work

7.

value: 1.00 points

Required information

c. At the time of the distribution, Bradys basis in his Maple Corp. stock was $0.