Carmen Corp. terminates its S status at the end of 2019. It had a beginning...
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Accounting
| Carmen Corp. terminates its S status at the end of 2019. It had a beginning of the year AAA balance of $20,000 and ordinary income for the year of $5,000.
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| What amount of distributions may be made tax-free to its shareholders in 2019?
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| If the distributions above are not made in 2019, what are the tax effects to Carmen heading into 2020 once it loses its S status (specific to the AAA balance)? |
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