Determinate the remaining balance in the accumulated earning

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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.

 

Reference no: EM131824316

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