Mary is a shareholder in CarrollCo, a calendar year S corporation. At the beginning of...
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Mary is a shareholder in CarrollCo, a calendar year S corporation. At the beginning of the year, her stock basis is $10,000, her share of the AAA is $2,000, and her share of corporate AEP is $6,000. At the end of the year, Mary receives from CarrollCo a $6,000 cash distribution. Marys share of S corporation items includes a $2,000 long-term capital gain and a $10,000 ordinary loss. Determine the effects of these events on Marys share of the entitys AAA, her stock basis, and CarrollCos AEP.
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