Larry's Landscaping, Inc. Starts Business On January 1, 2021, Larry's Landscaping, Inc. started business. Larry's Landscaping was started by Larry Plant. To start the corporation, Larry Plant purchased $10,000 of Larry's Landscaping, Inc. Common Stock. The issuance of Common Stock by Larry's Landscaping, Inc. to Larry Plant was the only transaction in January 2021. In February 2021, to continue the financing of the start-up of the business, Larry's Landscaping issued Common Stock to additional owners and borrowed on a long-term note from the bank. Also in February, Larry's Landscaping invested in various items of Property, Plant, & Equipment needed to operate the business. These items of Property, Plant, & Equipment were not placed into service until March 1; thus there will be no Depreciation recorded in the month of February. In March 2021, Larry's Landscaping starting operating the business by performing landscaping services for customers. The following are the Balance Sheets for Larry's Landscaping as of January 31, 2021 (the end of last period) and February 28, 2021 (the end of this period): Larry's Landscaping Balance Sheets as of the End of January and February 2021 February 28, 2021 January 31, 2021 Assets Cash .. . . $ 15,000 $10,000 Total Current Assets 15,000 10,000 Equipment Building Land .. 25,000 100,000 20,000 Total Property, Plant & Equipment 145,000 Total Assets $160,000 ........ ...... $10.000 Liabilities $100,000 Total Liabilities 100,000 Note Payable Long-Term ... $ Owners' Equity 6,000 54,000 1,000 9,000 10,000 Common Stock Paid-in Capital in Excess of Par Value.. Total Owners' Equity Total Liabilities and Equity $160,000 60,000 $10.000

ABC corporation, a calendar year S corporation, with two 50% shareholders, provided you with the following information for 2019: Tax-exempt interest income $10,000 Sales $300,000 Depreciation recapture income $12,000 Long-term capital gain $40,000 Section 1231 gain $7,000 Cost of goods sold ($142,000) Administrative expense ($35,000) Depreciation expense ($47,000) Charitable contributions ($7,000) Distributions to shareholders $100,000 1-1-2019 AAA balance $60,000 1-1-2019 shareholder basis in stock $45,000 each ($90,000 total) 1-1-2019 OAA balance $4,000 Calculate ABC corporation’s AAA balance as of 12-31-2019.

Sagar

Robert has recently decided to open his new business of retail of products for petcare in a store located in the center of Barcelona. During the month of May 2021, Robert’s new company 4PETS, Ltd. realized the following transaction:   3 of May: 4PETS, Ltd. issued to Robert 200,000 shares in exchange of $200,000 of share capital 3th of May: 4PETS, Ltd purchased a shop next to the cathedral for $300,000. The price of the land is $150,000. Robert paid $80,000 in cash and issued a note payable for the remaining part. 4th of May: 4PETS, Ltd purchased furniture to FURNITURES4ALL, Inc. for $35,000. 4PETS, Ltd paid $20,000 in cash, the remaining $15,000 will have to be paid the 29th of May. 5th of May: 4PETS, Ltd purchased merchandises on account to ALLANIMALS, Inc for $53,000 6th of May: 4PETS, Ltd makes some installations in the shop for $8,500 paid in cash 7th of May: 4PETS, Ltd hires one employee with a salary $1,500/ month. Salaries are paid on the following day 2 of each month. 16 of…