Towne, Inc Calculate Towne's Ending AAA Balance

question 4

Essay

Towne, Inc., a calendar year S corporation, holds AAA of $627,050 at the beginning of the tax year. During the year, the following items occur. $\begin{array}{lc}\text { Sales income } & \$ 216,000 \\\text { Loss from real estate operations } & (4,000) \\\text { Officers' life insurance proceeds } & 100,000 \\\text { Premiums paid for officers' life insurance } & (3,600) \\\text { Dividend income } & 17,000 \\\text { Interest income } & 3,000 \\\text { Charitable contributions } & (22,000) \\\S 179 \text { depreciation expense } & (2,500) \\\text { Administrative expenses } & (35,000) \\\text { Cash distributions to shareholders } & (73,220)\end{array}$ Calculate Towne's ending AAA balance.

---

Definitions:

Patrons

Individuals or entities that support someone or something, often financially or through advocacy.

Museum Entrance

A museum entrance refers to the gateway or access point through which visitors enter a museum, often designed to be welcoming and to give a preliminary sense of the museum's theme or importance.

Seat Rows

Arrangement of seats in horizontal lines, typically found in theaters, classrooms, or transportation vehicles.

Total Cost

The sum of all costs associated with the production or acquisition of goods or services.