Assuming that the books of the 1120-S corporation are being kept on a TAX (rather than accounting) basis, and the corporation has ALWAYS been an S corp, are the following statements true:
1. If the corp has shown an overall profit since the date of incorporation and there are no "timing" differences between the books and the return, then the AAA account will equal Retained Earnings and Retained Earnings will have a positive balance.
2. If the corporation has shown an o