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Problem 22-50 (LO. 6, 8, 9) Drop, Inc., a calendar years corporation, distributes $16,000 cash to its only shareholder, Luetta, on December 31. Luetta's basis
Problem 22-50 (LO. 6, 8, 9) Drop, Inc., a calendar years corporation, distributes $16,000 cash to its only shareholder, Luetta, on December 31. Luetta's basis in her stock is $20,000. Drop's AAA balance is $9,000, and Drop holds $3,000 of AEP and $1,000 of OAA before the distribution. Complete the following chart shown below. If an amount is zero, enter "o". Beginning Distribution Effect on Balance after balance from Account Stock Basis Distribution From AAA account $9,000 From AEP account $3,000 From OAA account $1,000 From Luetta's stock basis $20,000
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