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.

---

Definitions:

Defensive Coping

Strategies individuals use to protect themselves from psychological harm by denying or rationalizing away sources of stress or anxiety.

Unconscious Level

A part of the mind that influences actions and feelings without one's awareness, as theorized in psychoanalytic psychology.

Psychological Maladjustment

A state of being poorly or inadequately adjusted to environmental demands, often leading to distress or dysfunction.

Less Realistic

Describes an approach or expectation that might not accurately reflect actual circumstances or possibilities.