B. Also, how much is Nathan's ending stock basis?

22. Mohican, Inc. is a calendar year S corporation. Mohican's Form 1120S shows nonseparately stated net income of $100,000 for the year. Nathan owns 60% of the Mohican stock throughout the year. The following information is obtained from the corporate records. Sales $ 176,000 Dividends received 1,000 Tax-exempt municipal bond interest income 2,000 Short-term capital gain from the sale of ABC Corp. stock 4,000 Section 1231 gain 5,000 Section 1245 gain 6,000 Charitable contributions (8,000) Cost of goods sold (9,000) Long-term capital loss from the sale of DEF Corp. stock (30,000) Administrative expenses (23,000) Salary paid to Nathan (50,000) Nathan's beginning stock basis 80,000 Nathan's additional stock purchases during the year 20,000 Year-end cash distribution to Nathan 40,000 Beginning AAA balance 10,000 How much is Mohican, Inc.'s ending AAA balance? a) $( 8,000) b) $44,000 c) $-0- d) $50,000 e) $42,000