Holbrook, a calendar year S corporation, distributes $123,100 cash to its only shareholder, Cody, on December 31. Cody's basis in his stock is $147,720, Holbrook's AAA balance is $55,395, and Holbrook has $18,465 AEP before the distribution. According to the distribution ordering rules, complete the chart below to indicate how much of the $123,100 is from AAA and AEP as well as how Cody's stock basis is affected. Ch 23 HW assignment take frame 11 all amount is zero, emer "0". Beginning stock basis From AAA account From AEP account From Cody's stock basis Ending stock basis Basis in Stock $147,720 Distribution from Account Effect on Stock Basis

Holbrook, a calendar year S corporation, distributes $123,100 cash to its only shareholder, Cody, on December 31. Cody's basis in his stock is $147,720, Holbrook's AAA balance is $55,395, and Holbrook has $18,465 AEP before the distribution. According to the distribution ordering rules, complete the chart below to indicate how much of the $123,100 is from AAA and AEP as well as how Cody's stock basis is affected. Ch 23 HW assignment take frame 11 all amount is zero, emer "0". Beginning stock basis From AAA account From AEP account From Cody's stock basis Ending stock basis Basis in Stock $147,720 Distribution from Account Effect on Stock Basis

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter22: S Corporations

Section: Chapter Questions

Problem 36P

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