Tim acquired 100% of the stock of an existing calendar year corporation in 2019, and immediately elected the S corporation status for the company. At the end of the current year, Tims stock basis is $50,000, and he receives a distribution of $15,000. Corporate level accounts are as follows: AAA $13,000 Accumulated E&P 8,000 How is Tim taxed on the $15,000 distribution? Answer is 2,000 taxable dividends. I just don't know if how I did my math for it is correct as my teacher doesn't show just gives us the answer