Reference no: EM132480595

Question - Cougar, Inc., is a calendar year S corporation. Cougar's Form 1120S shows nonseparately stated ordinary income of $80,000 for the year. Johnny owns 40% of the Cougar stock throughout the year. The following information is obtained from the corporate records. Tax-exempt interest income $ 3,000 Salary paid to Johnny (52,000) Charitable contributions (6,000) Dividends received from a non-U.S. corporation 5,000 Short-term capital loss (6,000) Depreciation recapture income 11,000 Refund of prior state income taxes 5,000 Cost of goods sold (72,000) Long-term capital loss (7,000) Administrative expenses (18,000) Long-term capital gain 14,000 Selling expenses (11,000) Johnny's beginning stock basis 32,000 Johnny's additional stock purchases 9,000 Beginning AAA 31,000 Johnny's loan to corporation 20,000.

Required - Compute Cougar's book income or loss. Compute Johnny's ending stock basis. Calculate Cougar's ending AAA balance.