8. An S corporation may deduct: a. Charitable contributions within the percentage of income limitation applicable to corporations. b. Net operating loss carryovers. c. Foreign income taxes. d. Compensation of officers. 9. XYZ Inc., was a C corporation through the end of year 6 . Starting at the beginning of year 7, XYZ elected S corporation status. At the end of year 6,XYZ had accumulated earnings and profits (E \& P) of $53,700. At the end of year 7,XYZ had a balance of $32,000 in its accumulated adjustments account (AAA). During year 8 , XYZ had ordinary income of $15,300 and made distributions of $100,000. What amount of the distribution will be a nontaxable distribution out of S corporation earnings to the shareholders of XYZ at the end of year 8 ? a. $1,000 b. $47,300 c. $52,700 d. $53,700