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Hazel Is the Sole Shareholder of Maple Corp

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Hazel is the sole shareholder of Maple Corp. In 2014 Maple operated as a C corporation and reported $15,000 of taxable income (and earnings and profits). In 2014, Maple elected S corporation status. During 2015 Maple reported $12,000 of ordinary business income and no separately stated items. It also distributed $25,000 to Hazel. What is the amount and character of income Hazel must recognize on the distribution? What is Hazel's stock basis at the end of 2015 (after accounting for the distribution) if her basis at the beginning of the year was $5,000?


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