Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. tall corporation (an s-corporation) has aaa of $16

Tall Corporation (an S-corporation) has AAA of $16,000 and AEP of $8,000 .Tall Corp. distributes...

90.2K

Verified Solution

Question

Accounting

Tall Corporation (an S-corporation) has AAA of $16,000 and AEP of $8,000 .Tall Corp. distributes $20,000 of cash to its Henry, the sole shareholder. Henrys basis in his S Corp stock before the distribution is $40,000. Henry is in the 37% tax bracket. 1. What are the tax consequences to Henry as a result of this distribution?

2. What is ending balance in AAA and AEP. What is Henry's ending stock basis?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Which of the following changes is NOT a reversible change O Melting of water O...

Basic Math
1.2K views

Use the table below to answer the following questions Be sure to show your work...

Statistics
1.2K views

FINANCIAL ACCOUNTING 9 Itranscript Examine the following selected financial information for Great Buy Corporation and...

Statistics
1.2K views

3 A population of single celled organisms was grown in a Petri dish over a...

Accounting
1.2K views

BMW showed the following adjusted account balances on April 30, 2021: Property, Plant &...

Accounting
1.2K views

Question 1.The following balances were taken from Chico Company as at 31.12.2018 ...

Accounting
1.2K views

This is a marketing question

Accounting
1.2K views

In 2019, Carson is claimed as a dependent on his parents' tax return. Carson's parents...

Accounting
1.2K views

A company sells a plant asset which originally cost $370000 for $112000 on December 31,2021...

Accounting
1.2K views

The difference between preferred and common stock is that preferred stock: ...

Accounting
1.2K views

Great Adventures Problem AP11-1 The income statement, balance sheets, and additional information for Great Adventures,...

Accounting
1.2K views

1. Using a discount rate of 6.5 percent, calculate the present value of a $1,000...