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Which of these must be recorded on Schedule M-2 for Riptide, Inc., which was not previously...

Which of these must be recorded on Schedule M-2 for Riptide, Inc., which was not previously a C corporation, and made an S corporation election in 2013? Accumulated adjustments account (AAA). Accumulated earnings and profits. Other adjustments account (OAA). Shareholders' undistributed taxable income previously taxed

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Answer #1

The correct answer is Accumulated adjustment account (AAA)

Explanation: The standardize format for Schedule M-2 is , S Corporation  needs to record Beginning balance of AAA, then adjustments durig the period and ending AAA.

So Accumulated adjustment account (AAA) must be recorded on schedule M-2 for Riptide Inc.

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