Relax Corporation distributes $20,000 cash to shareholder Jack whose stock basis is $13,000 before this year's income or the distribution. Jack's share of ordinary income for the current year is $6,000, and the corporation has no separately stated items. Relax always has been an S corporation. Requirements a. What are the tax consequences of the distribution (i e., amount and character of income or gain to Relax and Jack)?

Requirenent b. What is Jack's stock basis at the end of the tax year?

Relax Corporason distributes $20,000 cash io shafeholder Jock whose stock basis is $1,3,000 before this year's income or the distritution. Jack's share of ondinary incime for the current year is $5,000, and the corporation has no separately stated itemn Relax ahwys has been an $ corporaston Requirements a. What are the tax coasequences of the distribution (i e, amount end character of inceme or pain to Relax and Jack)? b. What is Jacks slock basis at the end of the tax year? Requirement a, What are the tax comsequences of the disybution (i 0 , amount and character of income or gah to Relax and Jack)? (Enter a 0 if no income or gain is to be recogrized If ne hoome os gain is recognced, leave the character cohann blank)