4. Keith formed Partridge, Inc. (PI) on January 1, 20x1 by contributing $100,000 in exchange for 100% of PI stock. PI immediately (and properly) elected S corporation status. During 20x1, PI earned taxable income of $20,000 and tax-exempt interest of $2,000. PI also distributed $6,000 in cash out to Keith during 20x1. At December 31, 20x1, PIs only liability was a loan payable to U.S. Bank for $30,000. Assume that PI maintains an Accumulated Adjustments Account (AAA) in case it should merge with a C corp at some point in the future. What is PIs balance in its AAA at December 31, 20x1?

A. $116,000

B. $146,000

C. $16,000

D. $14,000