S Distributions Name PROBLEM 1: A distribution of money is made from an S corporation to its sole shareholder. Determine the tax consequences by completing the table below In each case the shareholder's basis is $125,000 at the time of the distribution. AAA EAP Distribution Tax Froe ROC Capital Gain Dividend End Basis End AAA 250,000-0 50,000 250,000 50,000 100,000 50,000-0 100,000 50,000 250,000 150,000 50,000 - 200,000 50,000 250,000 200,000 Part 2: Again, the shareholder's basis is $125,000. There is a distribution of property that has a fair market value of $50,000 and a tax basis to the S corporation of $40,000. What is the result of this distribution? This corporation has AAA of $40,000 BEFORE considering the distribution itself Corp GainkLoss Pre-dist AAA Distribution Amnt ROC CG End AAA End Basis PROBLEM 2: An S corporation that was formerly a C corporation sells an asset for $300,000. The asset had a basis to the corporation of $200,000. This asset is subject to the built-in-gains tax, and all of the gain realized from the sale was built-in at the date of conversion from a C corporation to an S corporation. Part A: What is the result to the S corporation? 4 points Part B: What is reported to the shareholder as a result of this sale? 4 points