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?

To calculate Linda's basis in the S Corporation stock on December 31, 2018, follow these steps:…

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?
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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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ABC Corp. had accumulated earnings and profits as of January 1, 2021 equal to $17,000. For the calendar year ending December 31, 2021 its current earnings and profits were equal to $10,000. On May 31, 2021, ABC Corp. distributed $32,500 to Smith its sole shareholder. On November 30, 2021, ABC Corp. distributed another $17,500 to Smith. Smith had purchased his ABC Corp, stock from Grey on September 15, 2015, paying $19,500 for his shares. a) What is the amount and character of the May 31, 2021 distribution received by Smith? b) What is the amount and character of the November 30, 2021 distribution received by Smith?
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?
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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?
For the last two years, Margaret Lane has Invested in the shares of Garod Inc. Details of her purchases and sales of these shares are as follows: Shares Purchased (Sold) Per Share Value January 2020 Purchase 300 $4.75 July 2020 Purchase 200 5.25 November 2020 Sale (250) 5.40 July 2021 Purchase 400 5.50 December 2021 Sale (150) 4.80 Determine Ms. Lane's taxable capital gains and allowable capital losses for 2020 and 2021.

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