3. Grog Inc. (calendar year S Corporation) has BOY balance in AAA of $188,000 and the following information.c Cost of Goods Sold $100,000 $50,000 Distribution to Vinny $30,000 $350,000 $10,000 Tax Exempt Income $6,000 Vinny is a 25% shareholder in Grog Inc. In December of this year, he loaned Grog $75,000 because it was short of cash. His BOY stock basis was $125,000. Charity Sales Dividend Income a. What is Grog Inc.'s ending AAA balance b. What is Vinny's ending stock basis?
3. Grog Inc. (calendar year S Corporation) has BOY balance in AAA of $188,000 and the following information.c Cost of Goods Sold $100,000 $50,000 Distribution to Vinny $30,000 $350,000 $10,000 Tax Exempt Income $6,000 Vinny is a 25% shareholder in Grog Inc. In December of this year, he loaned Grog $75,000 because it was short of cash. His BOY stock basis was $125,000. Charity Sales Dividend Income a. What is Grog Inc.'s ending AAA balance b. What is Vinny's ending stock basis?
Chapter22: S Corporations
Section: Chapter Questions
Problem 35P
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Transcribed Image Text:3. Grog Inc. (calendar year S Corporation) has BOY balance in AAA of $188,000 and the following information.in
Cost of Goods Sold
$100,000
$50,000
Distribution to Vinny
$30,000
Charity
Sales
Dividend Income
$350,000
$10,000
Tax Exempt Income
$6,000
Vinny is a 25% shareholder in Grog Inc. In December of this year, he loaned Grog $75,000 because it was short of cash.
His BOY stock basis was $125,000.
a. What is Grog Inc.'s ending AAA balance
b. What is Vinny's ending stock basis?
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