Delta Corporation, a calender-year S corporation, has an accumulated adjustments account of $8,000. It also has accumulated earnings and profits from pre-1983 years of $12,000. The sole shareholder receives a $27,000 cash distribution from the corporation. How will this distribution be treated if the shareholder's basis in the stock is $12,200?© BrainMass Inc. brainmass.com June 3, 2020, 10:53 pm ad1c9bdddf
Given that Delta Corporation elected to take distributions first from ...
This solution provides answers for cash distributions.