Valence Corporation's Form 1120S shows ordinary income of $88,000 for the year. Daniel owns 40% of the Valence stock throughout the year. The following information is obtained from the corporate records.

Salary paid to Daniel ................ ($40,000)

Tax-exempt interest income ............ 5,000

Charitable contributions ............... (6,000)

Dividends received from a non-U.S. corporation .... 5,000

Long-term capital loss............... (6,000)

Depreciation recapture income ........... 11,000

Refund of prior-year state income taxes ........ 5,000

Cost of goods sold.................($ 80,000)

Short-term capital loss ............... (7,000)

Administrative expenses ..............(18,000)

Short-term capital gain ................. 14,000

Selling expenses .................(11,000)

Daniel’s beginning stock basis ........... 32,000

Daniel’s additional stock purchases ......... 9,000

Beginning AAA .................. 45,000

Daniel’s loan to corporation ............ 20,000

a. Compute Valence’s book income or loss.

b. Compute Daniel’s ending stock basis.

c. Calculate ending corporate AAA.