Amit, Inc., an S corporation, holds an AAA balance of $614,000 at the beginning of the tax year. During the year, the following items occur. Operating income $501,000
Interest income 6,500
Dividend income 13,020
Municipal bond interest income 6,000
Long-term capital loss from sale of investment land 7,400
Section 179 depreciation deduction 6,000
Charitable contributions 19,000
Cash distributions 57,000

Amitâs ending AAA balance is:

a. $1,045,120.
b. $1,051,120.
c. $1,191,150.
d. $1,242,150.
e. Some other amount.

Sailcloth & more currently produces boat sails and is considering expanding its operations to include awnings for homes and travel trailers. the company owns land beside its current manufacturing facility that could be used for the expansion. the company bought this land 5 years ago at a cost of $319,000. at the time of purchase, the company paid $24,000 to level out the land so it would be suitable for future use. today, the land is valued at $295,000. the company has some unused equipment that it currently owns valued at $38,000. this equipment could be used for producing awnings if $12,000 is spent for equipment modifications. other equipment costing $490,000 will also be required. what is the amount of the initial cash flow for this expansion project?