Aaa

[JoshinNC]

Not the car people, Accumulated Adjustments Account.

Preparing 2005 1120S and reviewing 2004 1120S. On 2004 return there is a loss of $50,005 noted on line 4 of Sch. M-2. But, Line 3 shows addition of same amount, $50,005. What could the addition of the amount equal to the loss be? It has a note to see statement 5, which I don't have, of course.

Any leads would be greatly appreciated.

[Bees Knees]

Sounds like the preparer didn't know what the AAA account was used for, or was trying to tie it in with line 24 of the Schedule L. For whatever reason, it sounds like a plug to me.