Lonergan, Inc., a calendar year S corporation in Athens, Georgia, had a bal- ance in AAA of $200,000 and AEP of $110,000 on December 31, 2020. Dur- ing 2021, Lonergan, Inc., distributes $140,000 to its shareholders, while sustaining an ordinary loss of $120,000. Calculate the balance in Lonergan’s AAA and AEP accounts at the end of 2021.
Lonergan, Inc., a calendar year S corporation in Athens, Georgia, had a bal- ance in AAA of $200,000 and AEP of $110,000 on December 31, 2020. Dur- ing 2021, Lonergan, Inc., distributes $140,000 to its shareholders, while sustaining an ordinary loss of $120,000. Calculate the balance in Lonergan’s AAA and AEP accounts at the end of 2021.
Chapter22: S Corporations
Section: Chapter Questions
Problem 23CE
Related questions
Question
Lonergan, Inc., a calendar year S corporation in Athens, Georgia, had a bal- ance in AAA of $200,000 and AEP of $110,000 on December 31, 2020. Dur- ing 2021, Lonergan, Inc., distributes $140,000 to its shareholders, while sustaining an ordinary loss of $120,000. Calculate the balance in Lonergan’s AAA and AEP accounts at the end of 2021.
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 with 1 images
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
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT