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F owns all 100 shares of S Corp. Fs stock basis is $60,000. On December...

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Accounting

F owns all 100 shares of S Corp. Fs stock basis is $60,000. On December 1, 2017, S distributes 50 shares of preferred stock to F in a nontaxable distribution. The preferred shares are worth $150,000. The common shares are worth $300,000. In 2017, Ss earning profits is $100,000. On January 10, 2018, F sells her preferred stock to K for $200,000. In 2018, Ss earnings and profits are $175,000. What are the 2018 tax consequences to F and S?

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