Belgrad, Inc. is a calendar year S corporation. Rahid owns 40% of Belgrads stock. The following information is obtained from the corporate records:

Gross Income from Operations $80,000

Tax-exempt interest income 3,000

Dividends received from non-US corporations 5,000

Charitable contributions (6,000)

Depreciation recapture income 11,000

Interest income from bank 5,000

Salary paid to Rahid (52,000)

Short-term capital loss on investments (6,000)

Cost of goods sold (72,000)

Long-term capital gain on investments 14,000

Selling and administrative expenses (29,000)

Attach an excel spreadsheet to answer the three (3) questions below:

1. Using the information above, calculate Belgrads book income or loss.

2. Rahids beginning stock basis is $32,000 and he purchased $9,000 worth of additional stock during the year. Compute Rahids ending stock basis for the year.

3. Belgrads beginning AAA was $31,000, what is AAA at year-end?