Determine the ending balance in aaa


Sammy is the sole shareholder in a calendar year S corporation. At the beginning of the year, her stock basis is $10,000, the AAA is $2,000, and the corporate E&P is $5,000. Her share of S corporation items for the current year includes a $12,000 long-term capital gain and a $9,000 ordinary loss. She also receives a $6,000 distribution.

Determine the ending balance in AAA, E&P and stock basis after the effects of the current year events.

 

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Accounting Basics: Determine the ending balance in aaa
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