Question

Bernie is a shareholder in TimberLane, a calendar year S corporation. At the beginning of the...

Bernie is a shareholder in TimberLane, a calendar year S corporation. At the beginning of the year, his stock basis is $62,000, his share of the AAA is $13,000, and his share of corporate AEP is $38,000.

At the end of the year, Bernie receives from TimberLane a $31,000 cash distribution. Bernie's share of S corporation items includes a $10,000 long-term capital gain and a $68,000 ordinary loss.

Determine the effects of these events on TimberLane's AEP.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
a U.S. Citizen, is a sole shareholder of S corporation. He has $5,000 basis in stock....
a U.S. Citizen, is a sole shareholder of S corporation. He has $5,000 basis in stock. also loaned money to S Corporation and has basis of $3,000. Assume no AEP, calendar year and beginning balance of AAA and OAA accounts are zero. The corp. made $10,000 in the ordinary income which was reported on K-1. Corp. also received a tax- free interest income of $4,000 which was also reported on K-1. Ryan took a distribution of $21,000 during the year...
During the year, Chelsie, the sole shareholder of a calendar year S corporation, received a distribution...
During the year, Chelsie, the sole shareholder of a calendar year S corporation, received a distribution from the S-corp of $33,000 in cash. At the end of last year, her stock basis was $9,000. The corporation earned $11,000 ordinary income during the year. The corporation has no accumulated E & P, from prior years, but does have a beginning of the year balance in AAA of $3,000. How is the distribution to Chelsie taxed on her federal income tax return?
Cathy is a 30% shareholder throughout the year in Goff, Inc., a calendar year S-Corp. Sales...
Cathy is a 30% shareholder throughout the year in Goff, Inc., a calendar year S-Corp. Sales $210,000 COGS $87,000 Depreciation Expense $28,000 Administrative Expense $10,000 1231 Gain $15,000 1245 Gain $12,000 STCL from sale of stock $6,000 LTCL from sale of stock $8,000 LTCG from sale of stock $17,000 Charitable Contribution $5,000 a. Calculate Cathy’s share of ordinary income. b. Calculate Cathy’s share of separately stated items.
Turnip, Inc,. an S corporation, distributes a tract of land held as an investment (FMV=$82,000, basis=$22,000)...
Turnip, Inc,. an S corporation, distributes a tract of land held as an investment (FMV=$82,000, basis=$22,000) to chang, its sole shareholder. An AAA bypass election was not made. Turnip, Inc. has an AAA balance of $10,000 an OAA balance of $15,000, a PTI balance of $5,000 and an AEP balanc eof $20,000. CHang's basis in his Turnip's stock is $20,000, has and individual marginal tax rate of 33% and a capital gains tax rate of 15%. What is Turnip's recognized...
Tip Corporation is a calendar-year S corporation with 10,000 shares outstanding, 2,000 of which are owned...
Tip Corporation is a calendar-year S corporation with 10,000 shares outstanding, 2,000 of which are owned by Will and 8,000 of which are owned by Nancy. During the year Tip has ordinary business income of $540,000 and a long term capital gain of $230,000 from a transaction that occurred on April 3. On 11/1 Nancy sells Yolanda 3000 of her shares. How would the income be allocated to each shareholder?
At the beginning of the year, Lewis, Inc. (an S corporation) had an $8,000 balance in...
At the beginning of the year, Lewis, Inc. (an S corporation) had an $8,000 balance in AAA. During the year, Lewis earned business income of $15,000 and distributed $30,000 to its sole shareholder (Jerry). Jerry's basis in his stock was $12,000 at the beginning of the year. How much of the this distributions will be treated as a capital gain to Jerry? A. $7,000 B. $0 C. $18,000 D. $3,000
An S corporation is generally restricted to the calendar year end to mitigate tax deferral.True or...
An S corporation is generally restricted to the calendar year end to mitigate tax deferral.True or False Unlike partnerships, an S corporation shareholder’s basis is static and is not subject to periodic adjustments. True or False Juke, an S Corporation, distributes a parcel of land to Shannon, one of its shareholders. The land has a basis of $10,000 and a fair market value of $20,000. This distribution will cause Shannon to recognize a share of the deemed gain. True or...
Ima Lone, the sole shareholder of Lone Star, Inc, a S corporation, receives a distribution of...
Ima Lone, the sole shareholder of Lone Star, Inc, a S corporation, receives a distribution of corporate land (fmv $50,000, basis $30,000); her corporate basis is $40,000. Explain the effect on the corporation and the shareholder.
At the beginning of the year, Myrna Corporation (a calendar year taxpayer) has E & P...
At the beginning of the year, Myrna Corporation (a calendar year taxpayer) has E & P of $66,050. The corporation generates no additional E & P during the year. On December 31, the corporation distributes $99,075 to its sole shareholder, Abby, whose stock basis is $19,815. How is the distribution treated for tax purposes? If an amount is zero, enter "0". As a result the distribution Abby has the following: • Dividend income: $ • Return of capital: $ •...
Exercise 19-21 (Algorithmic) (LO. 1) At the beginning of the year, Myrna Corporation (a calendar year...
Exercise 19-21 (Algorithmic) (LO. 1) At the beginning of the year, Myrna Corporation (a calendar year taxpayer) has E & P of $86,750. The corporation generates no additional E & P during the year. On December 31, the corporation distributes $130,125 to its sole shareholder, Abby, whose stock basis is $26,025. If an amount is zero, enter "0". As a result the distribution Abby has dividend income of $__________ and a taxable capital gain of $____________. Abby's stock basis is...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT