1. Tiger Sticks, Inc. is a calendar year S Corporation in Augusta Georgia. On December 31, 2019 it had an ending balance in AAA of $2 million and an ending balance n AEP of $500,000. In 2020 Tiger Sticks, Inc. sustained a temporary setback with a key executive and the K-1 that was received by Goat Woods, its sole shareholder, reported a non-separately stated loss of $1 million and the only separately stated item was for a $25,000 charitable gift. Assume that Goat Woods has sufficient basis.

Calculate the ending balances of AAA and AEP for 2020 on December 31, 2020. (show your work)