Chris,the sole shareholder of Taylor,Inc.,elects during 2008 to terminate the S election,effective January 1,2009.As of the end of 2008,Taylor,Inc.,has AAA of $120,000 and OAA of $13,000.Chris receives a cash dividend of $130,000 on January 15,2009.If his stock basis is $220,000 before the distribution,calculate Chris' taxable amount and his ending stock basis.

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The Answer of Chris,the sole shareholder of Taylor,Inc.,elects during 2008 to terminate the S election,effective January 1,2009.As of the end of 2008,Taylor,Inc.,has AAA of $120,000 and OAA of $13,000.Chris receives a cash dividend of $130,000 on January 15,2009.If his stock basis is $220,000 before the distribution,calculate Chris' taxable amount and his ending stock basis.

Chris,the Sole Shareholder of Taylor,Inc