Question
CSU, Inc., is a calendar year S corporation. CSU's Form 1120S shows nonseparately stated ordinary income of $120,000 for the year. Taewon owns 30% of
CSU, Inc., is a calendar year S corporation. CSU's Form 1120S shows nonseparately stated ordinary income of $120,000 for the year. Taewon owns 30% of the CSU stock throughout the year. The following information is obtained from the corporate records.
Tax-exempt interest income
$4,500
Salary paid to Taewon
(78,000)
Charitable contributions
(9,000)
Dividends received from a non-U.S. corporation
7,500
Short-term capital loss
(9,000)
Depreciation recapture income
16,500
Refund of prior state income taxes
7,500
Cost of goods sold
($108,000)
Long-term capital loss
(10,500)
Administrative expenses
(27,000)
Long-term capital gain
21,000
Selling expenses
(16,500)
Taewon's beginning stock basis
48,000
Taewon's additional stock purchases
13,500
Beginning AAA
46,500
Taewon's loan to corporation
30,000
Compute Taewon's stock basis, showing the calculation, before any distribution. Taewon's stock basis check figure $101,10. Calculate CSU's ending AAA balance, showing the calculation, before any distribution.
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