JLcpa
Regular
Joined: 22 Sep 2009
Online Status: Offline
Posts: 202
|
| Posted: 30 Apr 2011 at 19:06 | IP Logged
|
|
|
An S Corp's Accumulated Adjustment Account, which measures the amt of earnings that may be distributed tax free
1. must be adjusted "downward" for the full amt of federal income taxes attributable to any taxable yr in which it was a C Corp
2. must be adjusted "upward" for the full amt of federal income taxes attributable to any taxable yr in which it was a C Corp
3. must be adjusted upward or downward for only the federal income taxes affected by capital gain/loss, for any taxable yr in which it was a C Corp
4. Is not adjusted for federal income taxes attributable to any taxable yr in which it was a C Corp
Ans. Option 4 is correct. AAA is not adjusted for fed inc tax; the adjustment is made to E&P.
Which of the 4 options is correct if the adj is to be made to E&P? Will it be option C?
thanks.
__________________
Jas, Jersey City, NJ
AUD- 18 Nov 2009- 86
FAR- 28 Jan 2010- 91
BEC- 26 Feb 2010- 87
REG- May 2011- 78
|
Active Topics 
Memberlist 
Search 
Help
Register 
Login
Topic: S corp
Topic Closed)
