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) (118,000) Interest income 12,600 Net section 1231 gain (loss) 68,750 Charitable contributions (6,000) Tax-exempt interest income 5,200 Nondeductible expenses (1,625) Distributions to shareholders 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)?

a. 187,350

b. 168,550

c. 166,925

d. 163,350