Problem 15-20 (LO. 4, 5, 6) Spence, Inc., a calendar year S corporation, generates an ordinary loss of $110,000 and makes a distribution of $140,000 to its sole shareholder, Storm Nelson. Nelson's stock basis and AAA at the beginning of the current year both total $200,000. Complete the memo to your senior manager, Ahmad McMullin, discussing the tax treatment of Spence's activities. If an amount is zero, enter " 0 ". TAX FILE MEMORANDUM Date: October 6, 2022 RE: S Corporation Losses and Distributions S corporation tax law now provides that distributions are treated as reductions of stock basis considering any losses. Thus, Storm Nelson, the sole shareholder, should treat the loss and distribution as follows