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Micaela Owns All the Shares of the Madison Corporation That

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Micaela owns all the shares of the Madison Corporation that operates as an S corporation. Micaela's basis in the stock is $40,000. During the year she receives a cash distribution of $10,000 from Madison. What must Micaela and Madison report as income from the cash distribution? Micaela owns all the shares of the Madison Corporation that operates as an S corporation. Micaela's basis in the stock is $40,000. During the year she receives a cash distribution of $10,000 from Madison. What must Micaela and Madison report as income from the cash distribution?

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