What Is the Effect on the AAA If an S

question 21

Multiple Choice

What is the effect on the AAA if an S corporation distributes a piece of property valued at $10,000 with a $5,000 basis to 50 percent shareholder and $10,000 cash to the other 50 percent shareholder in a nonliquidating distribution?

• A)$10,000 net increase
• B)$5,000 net increase
• C)$15,000 net decrease
• D)$20,000 net decrease

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A reference to Mangaia, an island in the Cook Islands, noted in sexological research for its unique sexual customs and behaviors among its inhabitants.

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