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Posted: June 15th, 2022
W. Connecticut ACC 404 Acme Corporation, a calendar year S corporation
Acme Corporation, a calendar year S corporation, has $100,000 of Accumulated Earnings and Profits. Larry, the sole shareholder, has adjusted basis of $80,000 in stock basis with a $20,000 in Accumulated Adjustments Accounts.1) Determinate the tax aspects if a $50,000 distribution is made to Larry.2) Determinate the remaining balance in the Accumulated Earnings and Profits and the Accumulated Adjustments Account.
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