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.
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.
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 45P
Related questions
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 |
$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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you