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Towne, Inc., a calendar year S corporation, holds AAA of $627,050 at the beginning of the tax year. During the year, the following items occur:
Towne, Inc., a calendar year S corporation, holds AAA of $627,050 at the beginning of the tax year. During the year, the following items occur:
Sales income $216,000
Loss from real estate operations 4,000
Officers' life insurance proceeds 100,000
Premiums paid for officers' life insurance 3,600
Dividend income 17,000
Interest income 3,000
Charitable contributions 22,000
Section 179 depreciation expense 2,500
Administrative expense 35,000
Cash distribution to shareholders 73,220
Calculate Towne's ending AAA balance.
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