Amit, Inc, an S Corporation, Holds an AAA Balance of $614,000

question 37

Multiple Choice

Amit, Inc., an S corporation, holds an AAA balance of $614,000 at the beginning of the tax year.During the year, the following items occur. $\begin{array}{lr}\text { Operating income } & \$ 501,000 \\\text { Interest income } & 6,500 \\\text { Dividend income } & 13,020 \\\text { Municipal bond interest income } & 6,000 \\\text { Long-term capital loss from sale of investment land } & 7,400 \\\text { Section } 179 \text { depreciation deduction } & 6,000 \\\text { Charitable contributions } & 19,000 \\\text { Cash distributions } & 57,000\end{array}$ ? Amit's ending AAA balance is:

• A)$1,055,620.
• B)$1,185,150.
• C)$1,191,150.
• D)$1,242,150.
• E)Some other amount.

---

Definitions:

Battery

In a legal context, it refers to the act of intentionally inflicting harmful or offensive contact upon another person.

Acting-Out Behaviors

Exhibiting problematic behavior to express thoughts or emotions that are difficult to communicate verbally.

Borderline Personality Disorder

A mental disorder characterized by pervasive instability in moods, interpersonal relationships, self-image, and behavior.

Assertive Action

A behavior characterized by confidently and firmly standing up for one's rights or needs without being aggressive.