Question

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 holds $2,500 AEP before the distribution. According to the distribution ordering rules, complete the chart below to indicate how much of the $15,000 is from AAA and AEP as well as how Cody's stock basis is affected. If an amount is zero, enter "0". Basis in Stock Distribution from Effect on Account Stock Basis Beginning stock basis $20,000 From AAA account $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 From AEP account $fill in the blank 4 $fill in the blank 5 $fill in the blank 6 From Cody's stock basis $fill in the blank 7 $fill in the blank 8 $fill in the blank 9 Ending stock basis $fill in the blank 10

          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 holds $2,500 AEP before the distribution. According to the
distribution ordering rules, complete the chart below to indicate how much of the $15,000
is from AAA and AEP as well as how Cody's stock basis is affected.
If an amount is zero, enter "0".
Basis in Stock
Distribution from Effect on
Account
Stock Basis
Beginning stock basis
$20,000
From AAA account
$fill in the blank 1
$fill in the blank 2 $fill in the blank 3
From AEP account
$fill in the blank 4
$fill in the blank 5 $fill in the blank 6
From Cody's stock basis $fill in the blank 7
$fill in the blank 8 $fill in the blank 9
Ending stock basis
$fill in the blank 10

holbrook a calendar year s corporation distributes 15000 cash to its only shareholder cody on december 31 codys basis in his stock is 20000 holbrooks aaa balance is 8000 and holbrook holds 2 85675

Added by Laura L.

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