Shadow Inc. is an S corporation with a prior history as a regular corporation. At the...
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Shadow Inc. is an S corporation with a prior history as a regular corporation. At the beginning of the year, the company had AAA of $230,000 and E&P of $170,000. Schedule K of the company's Form 1120S for the current year reported the following: Ordinary business income (loss) (page 1, line 21) Interest income Net section 1231 gain (loss) Charitable contributions Tax-exempt interest income Nondeductible expenses Distributions to shareholders (118,000) 12,600 68,750 (6,000) 5,200 (1,625) 24,000 What is the balance in the company's AAA account at the beginning of next year? (Assume the company did not elect to source distributions from E&P first)? Shadow Inc. is an S corporation with a prior history as a regular corporation. At the beginning of the year, the company had AAA of $230,000 and E&P of $170,000. Schedule K of the company's Form 1120S for the current year reported the following: Ordinary business income (loss) (page 1, line 21) Interest income Net section 1231 gain (loss) Charitable contributions Tax-exempt interest income Nondeductible expenses Distributions to shareholders (118,000) 12,600 68,750 (6,000) 5,200 (1,625) 24,000 What is the balance in the company's AAA account at the beginning of next year? (Assume the company did not elect to source distributions from E&P first)?
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Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
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