Identify which of the following statements is false. A. The AAA balance can be negative, but the shareholder's basis in the S

Question

3 years ago

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Identify which of the following statements is false. A. The AAA balance can be negative, but the shareholder's basis in the S

corporation stock cannot be less than zero. B. Nonmoney property distributions made by an S corporation having accumulated E&P are treated differently when determining the corporateminuslevel gain recognized under Sec. 311 than are property distributions made by an S corporation without accumulated E&P. C. The AAA represents the cumulative income/loss recognized in postminus1982 S corporation years. D. Taxminusexempt income does not increase the AAA but increases the basis of the S corporation stock.

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1 answer:

astra-53 [7] · Answer 1 · 2022-06-20T13:45:41+03:00

Answer:

(B) Nonmoney property distributions made by an S corporation having accumulated E&P are treated differently when determining the corporateminuslevel gain recognized under Sec. 311 than are property distributions made by an S corporation without accumulated E&P.

Explanation:

Identify which of the following statements is false. A. The AAA balance can be​ negative, but the​ shareholder's basis in the S

Identify which of the following statements is false. A. The AAA balance can be negative, but the shareholder's basis in the S