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Business, 22.04.2020 02:00 llama1314

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.

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