QUESTION 9 Lewis, Inc. is a calendar year S-Corporation with the following activity: 60,000 3,000 10,000 50,000 4,000 11,000 Ordinary Income Interest income - taxable Tax exempt income Distributions to shareholders Interest expense for loan to buy tax-exempt securities Charitable contributions Here is a picture of the Schedule M-2 for Lewis, Inc. showing the beginning balances in each category. Schedule M-2 Analysis of Accumulated Adjustments Account, Shareholders' Undistributed Taxable Income Previously Taxed, Accumulated Earnings and Profits, and Other Adjustments Account (see instructions) (a) Accumulated (b) Shareholders' (c) Accumulated (d) Other adjustments adiustments account undistributed taxable earnings and profits account income previously taxed Balance at beginning of tax year 6000 25000 8000 2 Ordinary income from page 1, line 21 3 Other additions 4 Loss from page 1, line 21 5 Other reductions 6 Combine lines 1 through 5 7 Distributions 8 Balance at end of tax year. Subtract line 7 from line 6 Form 1120-S (2020) 1 What is the ending balance in the Other Adjustments Account after the above activity? O $6,000 O $14.000 OSO O $17.000 QUESTION 9 Lewis, Inc. is a calendar year S-Corporation with the following activity: 60,000 3,000 10,000 50,000 4,000 11,000 Ordinary Income Interest income - taxable Tax exempt income Distributions to shareholders Interest expense for loan to buy tax-exempt securities Charitable contributions Here is a picture of the Schedule M-2 for Lewis, Inc. showing the beginning balances in each category. Schedule M-2 Analysis of Accumulated Adjustments Account, Shareholders' Undistributed Taxable Income Previously Taxed, Accumulated Earnings and Profits, and Other Adjustments Account (see instructions) (a) Accumulated (b) Shareholders' (c) Accumulated (d) Other adjustments adiustments account undistributed taxable earnings and profits account income previously taxed Balance at beginning of tax year 6000 25000 8000 2 Ordinary income from page 1, line 21 3 Other additions 4 Loss from page 1, line 21 5 Other reductions 6 Combine lines 1 through 5 7 Distributions 8 Balance at end of tax year. Subtract line 7 from line 6 Form 1120-S (2020) 1 What is the ending balance in the Other Adjustments Account after the above activity? O $6,000 O $14.000 OSO O $17.000