W. Connecticut ACC 404 Acme Corporation, a calendar year S corporation

Acme Corporation, a calendar year S corporation, has $100,000 of Gathered Earnings and Income. Larry, the only real shareholder, has adjusted foundation of $80,000 in inventory foundation with a $20,000 in Gathered Changes Accounts.1) Determinate the tax facets if a $50,000 distribution is made to Larry.2) Determinate the remaining steadiness within the Gathered Earnings and Income and the Gathered Changes Account.

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