LO.5, 6 Mary is a shareholder in CarrollCo, a calendar year S corporation. At the beginning of
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LO.5, 6 Mary is a shareholder in CarrollCo, a calendar year S corporation. At the beginning of the year, her stock basis is $10,000, her share of the AAA is $2,000, and her share of corporate AEP is $6,000. At the end of the year, Mary receives a $6,000 cash distribution from CarrollCo. Mary's share of S corporation items includes a $2,000 long-term capital gain and a $10,000 ordinary loss. Determine the effects of these events on Mary's share of Carroll Co's AAA, on CarrollCo's AEP, and on Mary's stock basis.
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Essentials Of Taxation Individuals And Business Entities 2019
ISBN: 9780357233290
1st Edition
Authors: William A Raabe, James C Young
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