Common use of Distribution of AAA Clause in Contracts

Distribution of AAA. Pursuant to paragraph (b)(2)(i) of this section, the portion of the distribution that is sourced from AAA is equal to the lesser of: The product of the qualified dis- tribution and the AAA ratio ($40 × 1, or $40), and X’s AAA immediately before the qualified distribution ($25) (see paragraph (d)(4)(ii)(B)(4)(iii) of this sec- tion). Therefore, $25 is sourced from AAA. Pursuant to paragraph (b)(2)(ii) of this section, after the distribution, X’s AAA is reduced by $25 to $0. Pursu- ant to paragraph (b)(2)(iii) of this sec- tion, A’s basis in its X stock is reduced by $25 to $400.

Distribution of AAA. Pursuant to paragraph (b)(2)(i) of this section, the portion of the qualified distribution that is sourced from AAA is equal to the lesser of: The product of the qualified dis- tribution quali- fied distribution and the AAA ratio ($40 500 × 10.25, or $40125), and X’s AAA immediately im- mediately before the qualified distribution distribu- tion ($25) (see paragraph (d)(4)(ii)(B)(4)(iii) of this sec- tion100). Therefore, $25 100 is sourced from AAA. Pursuant to paragraph (b)(2)(ii) of this section, after the distributiondis- tribution, X’s AAA is reduced by $25 100 to $0. Pursu- ant Pursuant to paragraph (b)(2)(iii) of this sec- tionsection, A’s basis in its X stock is reduced by $25 100 to $400350.

Distribution of AAA. Pursuant to paragraph (b)(2)(i) of this section, the portion of the qualified distribution that is sourced from AAA is equal to the lesser of: The product of the qualified dis- tribution quali- fied distribution and the AAA ratio ($40 60 × 1, or $4060), and X’s AAA immediately before the qualified distribution ($25) (see paragraph (d)(4)(ii)(B)(4)(iii) of this sec- tion100). Therefore, $25 60 is sourced from AAA. Pursuant to paragraph (b)(2)(ii) of this section, after the distribution, X’s AAA is reduced by $25 60 to $040. Pursu- ant Pursuant to paragraph (b)(2)(iii) of this sec- tionsection, A’s basis in its X stock is reduced by $25 60 to $400.

Distribution of AAA. Pursuant to paragraph (b)(2)(i) of this section, the portion of the distribution that is sourced from AAA is equal to the lesser of: The product of the qualified dis- tribution and the AAA ratio ($40 100 × 10.5, or $4050), and X’s AAA immediately before be- fore the qualified distribution ($25) (see paragraph (d)(4)(ii)(B)(4)(iii) of this sec- tion100). Therefore, $25 50 is sourced from AAA. Pursuant to paragraph (b)(2)(ii) of this section, after the distribution, X’s AAA is reduced by $25 50 to $050. Pursu- ant Pursuant to paragraph (b)(2)(iii) of this sec- tionsection, A’s basis in its X stock is reduced by $25 50 to $400450.