Which of the following increases the Accumulated Adjustments Account (AAA) of an S Corporation? Cost Of Goods Sold. Nontaxable Life Insurance Proceeds. Tax-Exempt Interest Income. Section 1250 Gains. QUESTION 16 Fannie has been the sole (one hundred percent (100\%)) shareholder of Beola Corporation, a calendar year 5 Corporation, since 1981, At end of 2024, Fannie's basis in her stock is $36,800 and she receives a distribution of $44,400 from Beola Corporation. Corporate level accounts of Beola Corporation are as follow: Accumulated Adjustments Account (AAA) - $19,800; Previously Taxed Income (PTI) - $7,300 Accumulated Earnings And Profits (AEP) - \$3,600. How is Fannie taxed on the distribution? A \$-0-Taxable Dividend and a \$-0-Long-Term Capital Gain. A \$3,600 Taxable Dividend and a $9,700 Long-Term Capital Gain. A \$3,600 Taxable Dividend and a \$4,000 Long-Term Capital Gain. A $3,600 Taxable Dividend