ABC corporation, a calendar year S corporation, with two 50% shareholders, provided you with the following information
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Question:
ABC corporation, a calendar year S corporation, with two 50% shareholders, provided you with the following information for 2019:
Tax-exempt interest income | $10,000 |
Sales | $300,000 |
Depreciation recapture income | $12,000 |
Long-term capital gain | $40,000 |
Section 1231 gain | $7,000 |
Cost of goods sold | ($142,000) |
Administrative expense | ($35,000) |
Depreciation expense | ($47,000) |
Charitable contributions | ($7,000) |
Distributions to shareholders | $100,000 |
1-1-2019 AAA balance | $60,000 |
1-1-2019 shareholder basis in stock | $45,000 each ($90,000 total) |
1-1-2019 OAA balance | $4,000 |
Calculate ABC corporation’s AAA balance as of 12-31-2019.
Related Book For
Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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