Which Item Has No Effect on an S Corporation's AAA

question 32

Multiple Choice

Which item has no effect on an S corporation's AAA?

• A)Stock purchase by a shareholder.
• B)Interest expense.
• C)Cost of goods sold.
• D)Capital loss.
• E)All of the above modify AAA.

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Definitions:

D-Ribose

A naturally occurring five-carbon sugar that is a key component of RNA.

Bromine Water

A solution of bromine in water, used as a reagent to test for the presence of unsaturation in organic compounds.

Monosaccharides

The simplest form of carbohydrates, consisting of single sugar molecules like glucose and fructose, that serve as energy sources.

Reducing Sugars

Sugars capable of acting as reducing agents, having free aldehyde or ketone groups that allow them to reduce other compounds, commonly tested by Benedict's or Fehling's solution.