Acme Corporation, a calendar year S corporation, has $100,000 of Accumulated Earnings and Profits. Larry, the sole shareholder, has adjusted basis of $80,000 in stock basis with a $20,000 in Accumulated Adjustments Accounts.
1) Determinate the tax aspects if a $50,000 distribution is made to Larry.
2) Determinate the remaining balance in the Accumulated Earnings and Profits and the Accumulated Adjustments Account.