1. Pilar owns 60% of Socrates stock (S-corporation) throughout the year. Pilars beginning of the year stock basis is $25,000. Pilar has an additional stock purchase (investment) this year of $15,000. Pilar loans the Corporation $10,000 this year. Socrates Corporation has beginning accumulated adjustment account of $110,000. Socrates Corporations Form 1120S shows the following information.

Sales 300,000

Long Term Capital Gain 3,000

Cost of Goods Sold 140,000

Tax Exempt Interest Income 2,000

Charitable contribution 10,000

Distribution to Pilar 5,000

a. What is Pilars end of the year stock basis?

b. What is Socrates Corporations end of the year AAA balance?