c. Calculate Cougar's ending AAA balance. 27,000 X जी
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter15: S Corporations
Section: Chapter Questions
Problem 2CE
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Question
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Transcribed Image Text:Problem 12-30 (LO. 6, 8)
Cougar, Inc., is a calendar year S corporation. Cougar's Form 1120S shows nonseparately stated.
ordinary income of $80,000 for the year. Johnny owns 40% of the Cougar stock throughout the year.
The following information is obtained from the corporate records.
Tax-exempt interest income
Salary paid to Johnny
O Charitable contributions
Dividends received from a non-U.S. corporation
Short-term capital loss
Depreciation recapture income
Refund of prior state income taxes
Cost of goods sold
Long-term capital loss
Administrative expenses
Long-term capital gain
Selling expenses
Johnny's beginning stock basis
Johnny's additional stock purchases
Beginning AAA
Johnny's loan to corporation
$3,000
(52,000)
(6,000)
5,000
(6,000)
11,000
5,000
(72,000)
(7,000)
(18,000)
14,000
(11,000)
32,000
9,000
31,000
20,000
Transcribed Image Text:a. Compute Cougar's book income or loss.
The entity's book income ✔ is $
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b. Compute Johnny's ending stock basis.
76,200
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c. Calculate Cougar's ending AAA balance.
27,000 X
88,000 ✔.
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