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Star, Inc., an S corporation, has a beginning of year AAA balance of $526,000. During the year, the following items occur. Operating income $651,300 Interest

Star, Inc., an S corporation, has a beginning of year AAA balance of $526,000. During the year, the following items occur.

Operating income $651,300
Interest income $8,500
Dividend income $17,600
Municipal bond interest income $7,200
Long-term capital loss from sale of investment land $9,600
Section 179 depreciation deduction $7,800
Charitable contributions $24,700
Cash distributions $74,100

Star's ending AAA balance is:

$1,168,500

$1,087,200

$1,161,300

$1,080,000

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