Liang, a calendar year S corporation, distributes $13,000 cash to its only shareholder, Aaron, on December 31. Aaron’s basis in his stock is $15,000. Liang’s AAA balance is $5,000; Liang holds a $7,500 AEP before this distribution. There is no OAA balance. Complete the following chart
Liang, a calendar year S corporation, distributes $13,000 cash to its only shareholder, Aaron, on December 31. Aaron’s basis in his stock is $15,000. Liang’s AAA balance is $5,000; Liang holds a $7,500 AEP before this distribution. There is no OAA balance. Complete the following chart
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Liang, a calendar year S corporation, distributes $13,000 cash to its only shareholder, Aaron, on December 31. Aaron’s basis in his stock is $15,000. Liang’s AAA balance is $5,000; Liang holds a $7,500 AEP before this distribution. There is no OAA balance. Complete the following chart
![Distribution from AAA Distribution from AEP
Aaron's Stock Basis
Beginning balance
Distribution ($13,000)
From AAA
From AEP
From stock basis
Ending balance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb28bbfac-f471-4a73-8c3c-71f55c0f3287%2F80291952-9b7f-4d47-bdad-95b462d4175c%2Flbcpmaa_processed.png&w=3840&q=75)
Transcribed Image Text:Distribution from AAA Distribution from AEP
Aaron's Stock Basis
Beginning balance
Distribution ($13,000)
From AAA
From AEP
From stock basis
Ending balance
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