Should AAA Equal Retained Earnings?
Do you know the difference between an Accumulated Adjustments Account (AAA) and Retained Earnings (RE)? AAA amounts are earnings that have already been taxed while retained earnings are all earnings. This webinar will compare and contrast the AAA and RE of an S corporation. You will learn when and why you must adjust AAA. Together we will review an example Form 1120-S, M-2, so you can properly prepare it for your clients.
Upon completion of this course, you will be able to:
- Describe and correctly calculate AAA.
- Describe and correctly calculate RE.
- Identify differences between AAA and RE.
- Accurately report AAA and RE on Form 1120S, Schedule M2.
This webinar includes the presentation slides, exam questions, live webinar recording with review questions, and Q&A transcript. CPE is issued after exam is successfully completed.
Randy Lawshe', EA