Appendix DCalculation of Stock Basis, AAA, PTI, Retained Earnings, and AE&P








__________________________________________________

________________________________________________________

Name




Taxpayer Identification No.


Schedule KNumber

Stock Basis

AAA

OAA

PTI

RetainedEarningsper Books9

AE&P









Balance, beginning of year


$________

$________

$________

$________

$________

$________

Carryover of prior years' net losses

N/A

(________)

XXXXXX

XXXXXX

XXXXXX

XXXXXX

XXXXXX

Ordinary income (nonseparately stated)

1

_________

_________

XXXXXX

XXXXXX

_________

XXXXXX

Other additions (reductions):








   Rental real estate activities

2

_________

_________

XXXXXX

XXXXXX

_________

XXXXXX

   Other rental activites

3c

_________

_________

XXXXXX

XXXXXX

_________

XXXXXX

   Portfolio income or (expense)

4a-4f

_________

_________

XXXXXX

XXXXXX

_________

XXXXXX

   Net gain (loss) under Section 1231

5

_________

_________

XXXXXX

XXXXXX

_________

XXXXXX

   Other income

6

_________

_________

XXXXXX

XXXXXX

_________

XXXXXX

   Charitable contributions

7

(________)

(________)

XXXXXX

XXXXXX

(________)

XXXXXX

   Section 179 expense deduction

8

(________)

(________)

XXXXXX

XXXXXX

(________)

XXXXXX

   Portfolio deductions

9

(________)

(________)

XXXXXX

XXXXXX

(________)

XXXXXX

   Other deductions

10

(________)

(________)

XXXXXX

XXXXXX

(________)

XXXXXX

   Investment interest expense

11a

(________)

(________)

XXXXXX

XXXXXX

(________)

XXXXXX

   Tax preference amount of non-oil-and-gas depletion

14c

_________

_________

XXXXXX

XXXXXX

_________

XXXXXX

   Foreign Taxes

15e

(________)

(________)

XXXXXX

XXXXXX

(________)

XXXXXX

   Section 59(e) expenditures1

16a

(________)

(________)

XXXXXX

XXXXXX

(________)

XXXXXX

   Tax-exempt interest income

17

_________

XXXXXX

_________

XXXXXX

_________

XXXXXX

   Other tax-exempt income

18

_________

XXXXXX

_________

XXXXXX

_________

XXXXXX

Nondeductible expenses:








   Federal taxes attributable to any C corporation tax year2

19

(________)

XXXXXX

(________)

XXXXXX

(________)

(________)

   Disallowed T&E expenses, fines, penalties, etc.

19

(________)

(________)

XXXXXX

XXXXXX

(________)

XXXXXX

   Deductions related to tax-exempt income 3

19

(________)

XXXXXX

(________)

XXXXXX

(________)

XXXXXX

   ________________________________

19

(________)

(________)

XXXXXX

XXXXXX

(________)

XXXXXX

Other items reported separately:








   Investment credit basis adjustment 4

21

(________)

(________)

XXXXXX

XXXXXX

(________)

XXXXXX

   Investment credit recapture basis adjustment 5

21

_________

_________

XXXXXX

XXXXXX

_________

XXXXXX

   Oil and gas depletion to extent of property basis

21

(________)

(________)

XXXXXX

XXXXXX

(________)

XXXXXX

    ________________________________

21

_________

_________

XXXXXX

XXXXXX

_________

XXXXXX

    ________________________________

21

_________

_________

XXXXXX

XXXXXX

_________

XXXXXX

Other "timing" differences:








   Income included on the return (Schedules K and K-1),








   not recorded on the books this year:








   ________________________________


XXXXXX

XXXXXX

XXXXXX

XXXXXX

(________)

XXXXXX

   ________________________________


XXXXXX

XXXXXX

XXXXXX

XXXXXX

(________)

XXXXXX

Expenses recorded on books this year, not included on








   the return (Schedules K and K-1):








Depreciation


XXXXXX

XXXXXX

XXXXXX

XXXXXX

(________)

XXXXXX

   ________________________________


XXXXXX

XXXXXX

XXXXXX

XXXXXX

(________)

XXXXXX

   ________________________________


XXXXXX

XXXXXX

XXXXXX

XXXXXX

(________)

XXXXXX

Income recorded on books this year, not included on the








   return (Schedules K and K-1):








   ________________________________


XXXXXX

XXXXXX

XXXXXX

XXXXXX

_________

XXXXXX

   ________________________________


XXXXXX

XXXXXX

XXXXXX

XXXXXX

_________

XXXXXX

Deductions included on the return (Schedules K and K-1),








   not charged against book income this year:








   Depreciation


XXXXXX

XXXXXX

XXXXXX

XXXXXX

_________

XXXXXX

   ________________________________


XXXXXX

XXXXXX

XXXXXX

XXXXXX

_________

XXXXXX

   ________________________________


XXXXXX

XXXXXX

XXXXXX

XXXXXX

_________

XXXXXX

Other adjustments:








   Current year "net income" used to restore debt basis


(________)

XXXXXX

XXXXXX

XXXXXX

XXXXXX

XXXXXX

   Capital contributions/stock purchases


_________

XXXXXX

XXXXXX

XXXXXX

XXXXXX

XXXXXX

   Reduction due to stock transfer


(________)

XXXXXX

XXXXXX

(________)

XXXXXX

XXXXXX

   Increase (decrease) for nontaxable reorganization, etc.


XXXXXX

_________

_________

_________

_________

_________

Net losses in excess of stock basis6


_________

XXXXXX

XXXXXX

XXXXXX

XXXXXX

XXXXXX

Balance before distributions


_________

_________

_________

_________

_________

_________

Distributions:7








   Nondividend distributions (i.e., return of basis)


(________)

(________)

(________)

(________)

(________)

XXXXXX

   Dividend distributions


XXXXXX

XXXXXX

XXXXXX

XXXXXX

(________)

(________)

   Nondividend distributions in excess of stock basis8


XXXXXX

XXXXXX

XXXXXX

XXXXXX

(________)

XXXXXX

Balance, end of year


$________

$________

$________

$________

$________

$________

































Notes:1. Circulation, research and experimental, intangible drilling and development, and mining development and exploration expenditures.2. AE&P is decreased only by tax credit recapture under Section 49(b) or 50(a) for which the S Corporation pays the tax; other federal taxes do not reduce AE&P.3. Depending on your treatment, this could include at least a portion of any premiums for officers' life insurance.4. See Section 50(c)(1) and (5). (Basis reduction for amount of credit claimed.)5. See Secion 49(b), 50(a), 50(c)(2), and 1371(c). (Basis restoration due to credit recapture.)6. Stock basis can never be less than zero.  If (after considering all items other than distribution) this worksheet shows stock basis to be negative, add an amount       necessary to cause stock basis to equal zero.  The amount entered on this line can be deducted if the shareholder has sufficienct debt basis; otherwise, the amount is a suspended loss carryover to the subsequent tax year.7. Distributions cannot reduce any account (i.e, column), other than retained earnings, below zero.8. Shareholder reports capital gain equal to this amount.9. Permanent differences in the book/tax treatment of items (such as nontaxable and tax exempt items) and the Section 179 deduction are reported on page 1 of this worksheet (page 4-69).  (These amounts affect stock basis and are shown on Schedule K of Form 1120S.)  Timing differences (such as the difference in book/tax amounts) are reported in the Other "timing" differences section on this page.  (These amounts do not affect stock basis and are shown on Schedule M-2 of Form 1120S.)  The Section 179 deduction is entered as a negative amount on page 1 (page 5-48) of this worksheet and is also entered as a positive amount (i.e., added back) on page 2 (page 5-49). (A worksheet for calculating basis in stock and debt is included as Appendix C.)