Chris,the sole shareholder of Taylor,Inc. ,elects during 2015 to terminate the S election,effective January 1,2016.As of the end of 2015,Taylor,Inc. ,holds AAA of $120,000 and OAA of $13,000.Chris receives a cash distribution of $130,000 on January 15,2016.If his stock basis is $220,000 before the distribution,calculate Chris's taxable amount and his ending stock basis.

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The Answer of Chris,the sole shareholder of Taylor,Inc. ,elects during 2015 to terminate the S election,effective January 1,2016.As of the end of 2015,Taylor,Inc. ,holds AAA of $120,000 and OAA of $13,000.Chris receives a cash distribution of $130,000 on January 15,2016.If his stock basis is $220,000 before the distribution,calculate Chris's taxable amount and his ending stock basis.

Chris,the Sole Shareholder of Taylor,Inc