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:

Deception

The act of misleading or lying to others, creating false impressions or beliefs, often used to achieve personal gain or to hide something.

Embezzlement

The act of withholding assets for the purpose of conversion of such assets, by one or more individuals to whom the assets were entrusted.

New Businesses

Enterprises that have been recently established or started operations.

Succession Plan

A strategy for identifying and developing future leaders within an organization, ensuring a smooth transition of key roles in the case of departure or retirement.