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Business, 10.04.2020 22:14 sammiehammer

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 Affect on Stock Basis Balance after Distribution
From AAA Account $-8000 $8000 $0
From AEP Account $2500 $0 $0
From Cody's stock basis $ $ $

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Holbrook, a calendar year S corporation, distributes $15,000 cash to its only shareholder, Cody, on...
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