Give true answer Linda owns 40% of the stock in an S Corporation. Linda's basisin the S Corporation stock on December 31, 2017, was $14,000.The income reported by the S Corporation in 2018 was$80,000. Linda received a distribution of $20,000 during theyear.What should be Linda's basis in the S corporation stock onDecember 31, 2018?

Step 1: Define StocksThe Stocks are the portion of the authorized capital made available to the…

Answered: Linda owns 40% of the stock in an S…

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter20: Corporations And Partnerships

Section: Chapter Questions

Problem 29CE

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On April 5, 2017, Gustavo was granted an NQSO for 200 shares of common stock at 50 per share. On the date of the grant, there was no readily ascertainable fair market value for the option. Gustavo exercised the options on March 31, 2018, when the stock was selling for 60 per share. He sold the shares on December 1, 2019, for 75 per share. a. What amount and type of income, if any, will Gustavo have on the exercise date? b. What amount and type of income, if any, will Gustavo have on the date of the sale?
Suppose that at the beginning of 2021 Jamaal's basis in his S corporation stock is $1,000 and he has a $10,000 debt basis associated with a $10,000 loan he made to the S corporation. In 2021, Jamaal's share of S corporation income is $4,000, and he received a $7.000 distribution from the S corporation. How much total income does Jamaal report in 2021 from these transactions? Multiple Choice $0 $4,000 $6,000 $7,000 None of the choices are correct.
Irina purchased 1000 common shares of Pacific Corporation stock at $18/share in 2013, to be held for investment. In 2019, she received a 5% nontaxable common stock dividend when the shares were worth $15/share. What is the per share basis of Irina's Pacific Corporation stock? Group of answer choices 17.86 18.00 17.14 15.00
John bought 2,100 shares of Intel stock on October 18, 2017, for $52 per share plus a $750 commission he paid to his broker. On December 12, 2021, he sells the shares for $75.50 per share. He also incurs a $1,000 fee for this transaction. a. What is John’s adjusted basis in the 2,100 shares of Intel stock? b. What amount does John realize when he sells the 2,100 shares? c. What is the gain/loss for John on the sale of his Intel stock? Gain?
John bought 1,000 shares of intel stock on October 18,2015, for $30 per share, plus a $750 commission he paid to his broker. On December 12, 2019, he sold the shares for $42.50 per share. He also incurred a $1,000 fee for this transaction. 1. What is John's adjusted basis in the 1,000 shares of intel stock? 2. What amount does John realize when he sells the 1,000 shares ? 3. What is the gain or loss for John on sale of his intel stock? 4. What is the character of the gain or loss?
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John bought $1,000 shares of intel stock on Oct 18,2016, for $30 per share plus $750 commission he paid to his broker. On Dec 12, 2020, he sells the shares for $42.50 per share. He also incurs a $1,000 fee for this transaction. What’s john’s adjusted basis in the 1,000 shares of Intel Stock? What amount does John realize when he sells the 1,000 shares? What is the gain/loss for John on the sale of his Intel stock? What is the character of the gain/loss?
(1) Carol owns 4,000 shares of the stock of ABC Corporation. In 2019, in exchange for some of her shares, Carol receives a check for $400,000. Her basis in her entire interest in ABC Corp was equal to $1,000,000, and her adjusted basis of the exchanged shares is equal to $250,000. ABC had $1,200,000 of Earnings & Profits as of the end of the 2019 tax year. In 2018, Carol sustained stock market losses equal to $175,000 and has a LTCL carryover to 2019 equal to $172,000. (a) Assuming she has no other items of income or loss in 2019 and does not itemized her deductions, what are the tax consequences to Carol if the redemption of her shares does not qualify for sale or exchange treatment under §302? The tax consequence (b) Assuming she has no other items of income or loss in 2019 and does not itemized her deductions, what are the tax consequences to Carol if the redemption of her shares does qualify for sale or exchange treatment under §302?
In February 2019, Sierra paid $4,500 to acquire 150 shares of CGL stock. In December 2021, CGL declared a two-for-one stock split. If there were no subsequent adjustments, what is Sierra's current basis in the stock, and how many shares does she own? $2,250 basis; 150 shares. $2,250 basis; 300 shares. $4,500 basis; 300 shares. $9,000 basis; 150 shares.
Mahan purchases 1,000 shares of Bluebird Corporation stock on October 3,2021 for $300,000. On December 12,2021, Mahan purchases an additional 750 shares of Bluebird stock for $210,000. According to market quotations, Bluebird stock is selling for $285 per share on December 31, 2021. Mahan sells 500 shares of Bluebird stock on March 1, 2022 for $162,500. What is the adjusted basis of Mahan’s Bluebird stock on December 31, 2021? What is Mahan’s recognized gain or loss from the sale of Bluebird stock on March 1, 2022, assuming that the shares sold are from the shares purchased on December 12, 2021? What is Mahan’s recognized gain or loss from the sale of Bluebird stock on March 1, 2022, assuming that Mahan cannot adequately identify the shares sold?
On October 30, 2019, Tess bought 500 shares of ACTS stock for ₱ 640.00 per share. OnNovember 15, 2020, ACTS paid a ₱ 620.00 dividend per share, and on January 15, 2021,she sold the stock for ₱ 677.80 per share. Did Tess gain or lose on the investment? Howmuch money did she gain or lose in the investment?

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