XYZ Corporation is a calendar-year S corporation. XYZ's form 1120S shows a non-separately stated net...
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Accounting
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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