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Boat Service Corporation elects S-corp status for calendar year 2018. Prior to this, they had operated as a C corp. At January 1, 2018, Boat

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Boat Service Corporation elects S-corp status for calendar year 2018. Prior to this, they had operated as a C corp. At January 1, 2018, Boat Service has $20,000 of C-cop accumulated E&P. During 2018, Boat Service reports $25,000 of ordinary income, a $5,000 long-term capital gain, and $75,000 of municipal bond income. bond income Boat Service distributes $100,000 to its sole shareholder, Bob on December 31, 2018. Bob's stock basis at January 1, 2018 was $145,000. Required Required: a) How much income does will have to report as a result of Boat Service's 2018 activities? b) Compute Boat Service's ending balances in AAA, accumulated E&P, and OAA

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