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:

Bilateral Symmetry

A body plan in which there are two symmetrical halves of the body, with a distinct left and right, matching one another.

Radial Symmetry

A body plan in which body parts are arranged around a central axis, characteristic of many invertebrates like jellyfish and sea urchins.

Deuterostomes

A major group of animals in which the anus develops from the first opening in the embryo, with humans and starfish as examples.

Chordates

A phylum of animals that, at some stage in their life cycle, possess a notochord, a hollow dorsal nerve cord, pharyngeal slits, endostyle, and a post-anal tail.