From the textbook, answer the following questions:

• McLin, Inc. is a calendar year S corporation. Its accumulated adjustments account (AAA) balance is zero.
  • McLin holds $90,000 of American Electric Power (AEP). Tobias, the sole shareholder, has an adjusted basis of $80,000 in his stock. Determine the tax aspect if a $90,000 salary is paid to Tobias.
  • Same as part (a), except that McLin pays Tobias a $90,000 dividend from AEP.
• If the beginning balance in Strauder, Inc.'s other adjustments account (OAA) is $5,700 and the following transactions occur, what is Strauder's ending OAA balance?

Depreciation recapture income	$22,700
Payroll tax penalty	(4,200)
Tax-exempt interest income	4,995
Nontaxable life insurance proceeds	50,000
Life insurance premiums paid (nondeductible)	(3,333)

Emeline, Inc., of Auburn, Alabama, is an accrual basis S corporation with three equal shareholders. The three cash basis shareholders have the following stock basis at the beginning of the year: Andre, $12,000; Crum, $22,000; and Barbara, $31,000. Emeline reports the following income and expense items.

Operating loss	($30,000)
Short-term capital gain	37,500
Long-term capital loss	(6,000)
Nondeductible fees and penalties	(3,000)

Emeline distributes $6,000 of cash to each of the shareholders during the tax year. Calculate each of the shareholders' stock bases at the end of the year.

• Ruby is the owner of all of the shares of an S corporation. Ruby is considering receiving a salary of $80,000 from the business. She will pay 7.65% Federal Insurance Contributions Act (FICA) taxes on the salary, and the S corporation will pay the same amount of FICA tax. If Ruby reduces her salary to $40,000 and takes an additional $40,000 as a distribution, how much total tax could be saved?

Submit your answers in a Microsoft Excel worksheet.