Question: XYZ Corporation is a calendar-year S corporation. XYZ's form 1120S shows a non-separately stated net income
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Question:
Question:
XYZ Corporation is a calendar-year S corporation. XYZ's form 1120S shows a non-separately stated net income of $100,000 for the year. Alex owns 60% of XYZ stock throughout the year.
The following information is obtained from the corporate records
Sales | $176,000 |
Dividends received | 1,000 |
Tax exempt municipal bond interest income | 2,000 |
Short-term capital gain from the scale of ABC Corp Stock | 4,000 |
Section 1231 gain | 5,000 |
Section 1245 gain | 6,000 |
Charitable contributions | (8,000) |
Cost of goods sold | (9,000) |
Long-term capital loss from the sale of DEF Corp stock | (30,000) |
Depreciation expense | (11,000) |
Administrative expenses | (12,000) |
Salary paid to Nathan | (50,000) |
Alex's beginning stock basis | 80,000 |
Alex's additional stock purchases during the year | 20,000 |
Year-end cash distribution to Alex | 40,000 |
Beginning AAA balance | 10,000 |
a) Calculate XYZ's ending AAA Balance.
b) Calculate Alex's ending stocks basis.
c) Assume if the sales were $96,000 and inseparably stated income totaled $20,000, what was XYZ's ending balance?
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