Money, Inc., a calendar year S corporation in Denton, Texas, has two unrelated shareholders, each owning 50% of the stock. Each shareholder recorded a $400,000 stock basis as of January 1. At the beginning of the tax year, Money reports balances in AAA of $300,000 and AEP of $600,000. During the year, Money generates operating income of $100,000. At the end of the year, Money distributes securities worth $1,000,000, with an adjusted basis of $800,000. Required:
Determine the Federal income tax effects of these transactions.

The stage is minimally lit and two silhouettes appear, one is hunched while the other walks upright.

Explanation:

1: this is what I keep telling you

2. What, exactly

1: That one must look after oneself before others.

2: don't be so cynical

1: I am not hunched over without experience

2: Indeed

1: Indeed

2: the hunch is not a sign of wisdom

1: not going to oxford was not smart of you

2: I can't leave her behind

1: If she cares so much she would have waited

2: It does not work like that

1: it does

2: it can't be too bad

1: it will be, when you're hunched like me and telling people your age what not to do, if you keep on making choices like this.