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hello and welcome to this session which would look at an example for Triple A so before we look at an example let's real quick review what Triple A is Triple A is stands for accumulated adjustment account it represent the cumulative total undistributed undistributed non separately not none separately in separately stated items so all the undistributed non separately in separately stated items are accounted for in Triple A now why real quick why because an S corporation as a tax tax flow entity so what's gonna happen we need to keep track of what was taxed so the earnings when they are distributed to the shareholder they are not taxed again so if the distribution is coming out of Triple A if they're coming out of Triple A they already been taxed okay and what does Triple A keep track of non separately stated item and separately stated item so when the company started triple-a is zero okay so what what increases triple-a schedule K income items other than tax exempt income so just be car

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