LO.5, 6 Holbrook, a calendar year S corporation, distributes $15,000 cash to its only shareholder, Cody, on

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LO.5, 6 Holbrook, a calendar year S corporation, distributes $15,000 cash to its only shareholder, Cody, on December 31. Cody's basis in his stock is $20,000, Holbrook's AAA balance is $8,000, and Holbrook holds $2,500 AEP before the dis- tribution. Complete the chart below. Distribution from Account Effect on Stock Basis Balance after Distribution From AAA account From AEP account From Cody's stock basis

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