Vanessa is the sole shareholder of V Corporation.V Corporation was formerly a C corporation but is currently an S corporation.At the end of 2017,before considering distributions,V Corporation's accumulated adjustments account (AAA)balance was $35,000 and its accumulated E&P from its years as a C corporation was $10,000.On July 1,V Corporation distributed $60,000 to Vanessa.What is the amount and character of income Vanessa must recognize on the distribution if her stock basis before considering the distribution was $60,000? What is Vanessa's stock basis after accounting for the distribution?

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The Answer of Vanessa is the sole shareholder of V Corporation.V Corporation was formerly a C corporation but is currently an S corporation.At the end of 2017,before considering distributions,V Corporation's accumulated adjustments account (AAA)balance was $35,000 and its accumulated E&P from its years as a C corporation was $10,000.On July 1,V Corporation distributed $60,000 to Vanessa.What is the amount and character of income Vanessa must recognize on the distribution if her stock basis before considering the distribution was $60,000? What is Vanessa's stock basis after accounting for the distribution?

Vanessa Is the Sole Shareholder of V Corporation