What Is the Effect on the AAA If an S

Multiple Choice

What is the effect on the AAA if an S corporation distributes a piece of property valued at $10,000 with a $5,000 basis to 50 percent shareholder and $10,000 cash to the other 50 percent shareholder in a nonliquidating distribution?

A) $10,000 net increase
B) $5,000 net increase
C) $15,000 net decrease
D) $20,000 net decrease