Tamara owns interest in two different entities: a partnership and an S-Corp. Her basis in the partnership is $40,000. Her basis in the S-Corp is 23,250. Tamara is the sole owner of the S-Corp. Tamara received a cash distribution of $25,500 from her S-Corp. Corporate-level accounts at the end of the year were as follows. AAA $9,000 OAA 13,500 Accumulated E & P 900
Tamara owns interest in two different entities: a partnership and an S-Corp. Her basis in the partnership is $40,000. Her basis in the S-Corp is 23,250. Tamara is the sole owner of the S-Corp. Tamara received a cash distribution of $25,500 from her S-Corp. Corporate-level accounts at the end of the year were as follows. AAA $9,000 OAA 13,500 Accumulated E & P 900
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Tamara owns interest in two different entities: a partnership and an S-Corp. Her basis in the partnership is $40,000. Her basis in the S-Corp is 23,250. Tamara is the sole owner of the S-Corp.
Tamara received a cash distribution of $25,500 from her S-Corp. Corporate-level accounts at the end of the year were as follows.
AAA $9,000
OAA 13,500
Accumulated E & P 900
Transcribed Image Text:Fill out the following table to determine how Tamara's distribution will be taxed:
Year-end
balance
From AAA
From E&P
From OAA
Remainder of
distribution
Ending balance
AAA
AEP
OAA
Stock Basis
Dividend
LTCG
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