table gift. Assume that Goat Woods has sufficient basis. Calculate the ending balances of AAA and AEP for 2020 on December 31, 2020. (show your work)
table gift. Assume that Goat Woods has sufficient basis. Calculate the ending balances of AAA and AEP for 2020 on December 31, 2020. (show your work)
Chapter22: S Corporations
Section: Chapter Questions
Problem 23CE
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Question
Tiger Sticks, Inc. is a calendar year S Corporation in Augusta Georgia. On December 31, 2019 it had an ending balance in AAA of $2 million and an ending balance n AEP of $500,000. In 2020 Tiger Sticks, Inc. sustained a temporary setback with a key executive and the K-1 that was received by Goat Woods, its sole shareholder, reported a non-separately stated loss of $1 million and the only separately stated item was for a $25,000 charitable gift. Assume that Goat Woods has sufficient basis. Calculate the ending balances of AAA and AEP for 2020 on December 31, 2020. (show your work)
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