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

question 115

Multiple Choice

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

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

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Definitions:

Providing Services

Refers to the act of performing tasks or duties for others, usually in exchange for compensation.

Managing Partner

A member of a partnership who has the authority and responsibility for the management and operation of the business.

Articles Of Organization

The document filed with a state authority to legally establish a limited liability company (LLC).

Business Run

An operation or series of operations involving the production, distribution, and sale of goods or services by a business.