Determine income and gain or loss

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Question - S Corporation Taxation - Garth is a shareholder in a calendar year S corporation. At the beginning of 2020, his stock basis is $ 20,000, his share of the AAA is $ 4,000, and his share of corporate AEP is $ 12,000. He receives a $17,000 distribution, and his share of S corporation items includes a $ 12,000 long- term capital gain and a $( 7,000) operating loss (i.e. a non-separately stated loss).

-Determine the ending balance that Garth has in his stock basis, AEP and AAA

-Determine income, gain, and/or loss that Garth will show on his 2020 1040 return.

Reference no: EM133001392

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