Chris, the sole shareholder of Taylor, Inc., elects during 2016 to terminate the S election, effective January 1, 2017. As of the end of 2016, Taylor, Inc., holds AAA of $120,000 and OAA of $13,000. Chris receives a cash distribution of $130,000 on January 15, 2017. 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 2016 to terminate the S election, effective January 1, 2017. As of the end of 2016, Taylor, Inc., holds AAA of $120,000 and OAA of $13,000. Chris receives a cash distribution of $130,000 on January 15, 2017. 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