QUESTION 35 Monica, an individual, is a forty-five percent (45) owner of the calendar year Falls Corporation, an S Corporation. Monica's beginning basis in her stock for the year of 2021 is $230,000 and Falls Corporation reports the following items for the year of 2021: Ordinary Income - 564,000 Short Term Capital Gain - 516.000; Section 1231 Loss - 56,000; Tax-exempt interest Income - $5,000. Monica's basis in her stock at the end of the year of 2021 OS -0. $268,250 $265.550 $230,000 QUESTION 36 Which of the following has no affect on the Accumulated Adjustments Account (AAA) of an S Corporation? Expenses related to Tax-Exempt Income. Nontaxable Distributions to shareholders of the S Corporation. Charitable Contribution Section 1231 Gain OOO QUESTION 37 Blanton Corporation, an s Corporation, distributes a machine to Gates, a majority shareholder in Blanton Corporation. The machine has an adjusted basis of $30,000 and a Fair Market value of 580,000. Blanton Corporation recognizes a gain for the distribution of the machine of $50,000 OSO $30,000 $80,000 QUESTION 38 Norman Corporation, a calendar year S Corporation has an Operating Loss of $80,000 and a Long-Term Capital Loss of $20,000 for the year of 2021. Monica, an individual, owns forty percent (40%)% of the stock of Norman Corporation and has a $25,000 basis in her stock at the beginning of the year of 2021. What amount of the Long-Term Capital Loss can Monica deduct on her personal Federal Income Tax Return (Form 1040) for the year of 20217 $25,000 $5,000 $40,000 $20,000