For S Corporations that have Accumulated Earnings and Profits from prior C Corporation years, the tax laws mandate the maintenance of an Accumulated Adjustments Account (AAA) to determine taxability of S Corporation distributions. The AAA represents the cumulative income or losses for the period the business has been an S Corporation. How do you compute the ending balance of the AAA ? What makes the AAA a unique account ? Is the C Corporation status preferable to the S Corporation status ? Why ? If you started a business and were limited to two choices - S Corporation and C Corporation, which would you choose ? Why ? Would you favor a sole proprietorship, partnership, or LLC if these choices were available ? Why ?