Suzy has been the sole shareholder of a calendar year


Question Description:

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Suzy has been the sole shareholder of a calendar year S-Corporation since 1979. The S-Corporation has the following balances: AAA $5,000 AE&P $9,000 Suzy received a distribution of $15,000 when her basis was $5,000. a) How will Suzy’s distribution be taxed? b) What is Suzy’s basis after the distribution?

Answer

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