Question Based upon the following facts about Aqua, Inc., a calendar year S corporation, prepare the entity's Schedule M-2, fill out column. AAA, beginning of the year $9,400 Ordinary income 24,600 Tax-exempt income 3,000 Key employee life insurance proceeds received 4,900 Payroll penalty expense 2,200 Charitable contributions 3,000 Unreasonable compensation 4,000 Premiums on key employee life insurance 2,300 Distribution to shareholders 17,000 Particulars Accumulated Adjustments Account Other Adjustments Account Balance at beginning of Tax Year 9400 Ordinary Income from page 1, Line 21 24600 Other additions 0 7900 Loss from Page 1, line 21 Other reductions 2300 Combine line 1 through 5 5600 Distributions other than dividend distributions 0 Balance at end of tax year 5600
Question Based upon the following facts about Aqua, Inc., a calendar year S corporation, prepare the entity's Schedule M-2, fill out column. AAA, beginning of the year $9,400 Ordinary income 24,600 Tax-exempt income 3,000 Key employee life insurance proceeds received 4,900 Payroll penalty expense 2,200 Charitable contributions 3,000 Unreasonable compensation 4,000 Premiums on key employee life insurance 2,300 Distribution to shareholders 17,000 Particulars Accumulated Adjustments Account Other Adjustments Account Balance at beginning of Tax Year 9400 Ordinary Income from page 1, Line 21 24600 Other additions 0 7900 Loss from Page 1, line 21 Other reductions 2300 Combine line 1 through 5 5600 Distributions other than dividend distributions 0 Balance at end of tax year 5600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Based upon the following facts about Aqua, Inc., a calendar year S corporation, prepare the entity's Schedule M-2, fill out column.
AAA, beginning of the year $9,400
Ordinary income 24,600
Tax-exempt income 3,000
Key employee life insurance proceeds received 4,900
Payroll penalty expense 2,200
Charitable contributions 3,000
Unreasonable compensation 4,000
Premiums on key employee life insurance 2,300
Distribution to shareholders 17,000
| Particulars | Accumulated Adjustments Account | Other Adjustments Account | |
| Balance at beginning of Tax Year | 9400 | ||
| Ordinary Income from page 1, Line 21 | 24600 | ||
| Other additions | 0 | 7900 | |
| Loss from Page 1, line 21 | |||
| Other reductions | 2300 | ||
| Combine line 1 through 5 | 5600 | ||
| Distributions other than dividend distributions | 0 | ||
| Balance at end of tax year | 5600 |
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