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On January 1, 2022, Kendal Ing, an S corporation, reported $8,400 of AEP, a balance of $21,000 in AAA and a balance of $6,000 in
On January 1, 2022, Kendal Ing, an S corporation, reported $8,400 of AEP, a balance of $21,000 in AAA and a balance of $6,000 in OAA. Kendal has only one shareholder, Alexander, whose stock basis at the beginning of the year is $30,000. Kendal's non-separately stated ordinary income for the year is $10,500. Kendal distributes $50,000 to Alexander on December 21. How much of the distribution Alexander receives will be treated as tax-free from AAA? 2. How much of the distribution Alexander receives will be treated as taxable dividend income? 3. How much of the distribution Alexander receives will be treated as tax-free from OAA? 4. How much of the distribution Alexander receives will be treated as tax-free out of stock basis? 5. How much of the distribution Alexander receives will be treated as taxable capital gain
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