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- Critical Diags Distributions are greater than Net balance available - distributed Cash Flow, the basis is what it is. Can I ignore?
Critical Diags Distributions are greater than Net balance available - distributed Cash Flow, the basis is what it is. Can I ignore?
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cdicfo
Level 3
02-13-2021
06:48 PM
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This Sub-S has been around for ever and the RE has a Dr balance (although there is contributed cap). The distributions are from cash flow. Should I ignore since the entry is correct as presented?
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itonewbie
Level 15
02-15-2021
06:32 AM
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Just curious, how can there be a larger distribution than balance available? Did you check that cash and property distributions are properly accounted for?
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Still an AllStar
Still an AllStar
cdicfo
Level 3
02-15-2021
08:53 AM
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It is a small family Sub S that has been around for decades and depreciation and prior year losses reduced retained earnings. There was also a property exchange some years ago. There is also contributed capital which the program does not look at for RE. There is, however, happy cash flow and that is distributed as and when available. Distributions have NOT exceeded shareholder basis. There IS net equity due to capital stock and paid in capital. I'm seeing that this error only impacts the calculation of the balance sheet and that is not completed - the Sub S is too small. I found something that said if I manually calculated the M2 and L I might might it happy.
