Money, Inc., a calendar year S corporation in Denton, Texas, has two unrelated shareholders, each owning 50%

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Money, Inc., a calendar year S corporation in Denton, Texas, has two unrelated shareholders, each owning 50% of the stock. Both shareholders have a $400,000 stock basis as of January 1, 2014. At the beginning of 2014, Money has an AAA of  $300,000 and AEP of $600,000. During 2014, Money has operating income of $100,000. At the end of the year, Money distributes securities worth $1 million, with an adjusted basis of $800,000. Determine the tax effects of these transactions.

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South Western Federal Taxation 2015

ISBN: 9781305310810

38th Edition

Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young

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