Nanette receives a distribution of $ 170,000 from Johnson Corporation , an Corporation , in which she is the sole ( one hundred percent ( 100 % ) shareholder Johnson Corporation has an Accumulated Adjustments Account ( AAA ) of $ 22,500 and Accumulated Earnings And Profits ( AEP ) of $ 2,500 Nanette's basis in her stock in Johnson Corporation is $ 30,000 . The amount of Ordinary Income ( Dividends ) recognized by Nanette as a result of this distribution is $ 137,500? Discuss