Hudson Inc. is an S$-$Corp that reports the following balances at the beginning of the tax year:

$\backslash$table$[[$AAA$,40,000],[$AEP$,15,000],[$OAA$,4,500]]$

In addition it reports the following current year activity:

Tax$-$Exempt Interest Income

Sales Revenues

$$3,500$

$120,000$

Dividend Income from a $20\%$ owned Corporation $25,000$

Cost of Goods Sold

Short$-$term Capital loss

Salaries paid to the owners

Investment Interest Expense

Cash Distribut$$on

$(70,000)$

$(30,000)$

$(40,000)$

$(10,000)$

$(60,000)$

A$)$ What is Hudson's Non$-$Separately Stated income or loss for the year?

B$)$ Using the information from the problem parameters, what is the balance in AAA before the allocation of any distributions?

C$)$ What is the ending balance in AEP?

D$)$ Assume the S$-$corp has a single shareholder who is a taxable individual. What is the effect on the shareholder's current year taxable income as a result of the current year activity? You can assume that Hudson is their only investment that generates capital gains or losses, they itemize their deductions, and generate significant amounts of interest income from other investments.