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Please solve this by writing thanks Question Description Question: XYZ Corporation is a calendar-year 5 corporation. XYZ's form 11205 shows a non- separately stated net
Please solve this by writing thanks
Question Description Question: XYZ Corporation is a calendar-year 5 corporation. XYZ's form 11205 shows a non- separately stated net income of $100,000 for the year. Alex owns 60% of XYZ stock throughout the year. The following information is obtained from the corporate records Sales $176,000 Dividends received 1,000 Tax exempt municipal bond interest income 2,000 Short-term capital gain from the scale of ABC Corp Stock 4,000 Section 1231 gain 5,000 Section 1245 gain 6,000 Charitable contributions (8,000) Cost of goods sold (9,000) Long-term capital loss from the sale of DEF Corp stock (30,000) Depreciation expense (11,000) Administrative expenses (12,000) Salary paid to Nathan (50,000) Alex's beginning stock basis 80,000 Alex's additional stock purchases during the year 20,000 Year-end cash distribution to Alex 40,000 Beginning AAA balance 10,000 a) Calculate XYZ's ending AAA Balance. b) Calculate Alex's ending stocks basis. C) Assume if the sales were $96,000 and inseparably stated income totaled $20,000, what was XYZ's ending balanceStep by Step Solution
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