Answer;
AAA account balance after distribution was 0
AEP account balance after distribution was 0
Cordy account balance after distribution was $18,095
Explanation:
Holbrook corporation
From AAA account
Distribution from AAA account 8,000 not taxable
Effect on stock basis (8000)
Balance after distribution 0
From AEP account
Distribution from account 7,755 is a taxable dividend, in which it doesn't affect stock basis because it is from a previous S-corporation.
Effect on stock basis 0
Balance after distribution 0
From Cody’s stock basis
Distribution from account 20,680
(51,700-23,265-7,755)
Effect on stock basis (20,680)
Balance after distribution
(62,040-23,265-20,680)= $18,095
