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 has $2,500 AEP before the distribution. According to the distribution ordering rules, complete the chart below. If an amount is zero, enter "0". Distribution from Account From AAA Account From AEP Account From Cody's stock basis Affect on Stock Basis Balance after Distribution $-8000 $8000 $2500 $0 $ $ $0 $0 $

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 has $2,500 AEP before the distribution. According to the distribution ordering rules, complete the chart below. If an amount is zero, enter "0". Distribution from Account From AAA Account From AEP Account From Cody's stock basis Affect on Stock Basis Balance after Distribution $-8000 $8000 $2500 $0 $ $ $0 $0 $

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter19: Corporations: Distributions Not In Complete Liquidation

Section: Chapter Questions

Problem 37P

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