Townie, Inc is a calendar year S corporation which has AAA of $627,050 at the be

Question

Townie, Inc is a calendar year S corporation which has AAA of $627,050 at the beginning of 2016. During 2016 the following items occur: (10 points) Sales income $216,000 Loss from real estate operations ($ 4,000) Officers’ life insurance proceeds $100,000 Premiums paid for officers’ life insurance $ 3,600 Dividend income $ 17,000 Interest income $ 3,000 Charitable contributions $ 22,000 §179 depreciation expenses $ 2,500 Administrative expenses $ 35,000 Cash distributions to shareholders $ 73,220 Calculate Townie Inc’s ending AAA balance

Explanation / Answer

Opening Balance 627050 (+) Sales income 216000 (+) Officers' life insurance proceeds 100000 (-)Premiums paid for officers' life -3600 (+)Dividend income 17000 (+) Interest income 3000 (-)Charitable contributions -22000 (-) Administrative expenses -35000 (-)cash distribution to shareholders -73220 Ending balance 829230

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