Financial Accounting please provide answer this question Michael owns 35% of the stock in an S Corporation. His basis in the S Corporationstock on December 31, 2022, was $18,500.The income reported by the S Corporation in 2023 was $90,000.Michael received a distribution of $25,000 during the year.What should be Michael's basis in the S Corporation stock on December 31,2023?

Step 1: Define Stock Basis in an S CorporationAn S Corporation shareholder's stock basis represents…

Answered: Michael owns 35% 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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Devi is the chief executive officer of Nishida Limited. Devi owns 20 percent of the common stock of Nishida. During the current year, Devis salary is 60,000 and he receives a 30,000 bonus. Nishida has taxable income of 200,000 and pays 80,000 in cash dividends. How much gross income does Devi have if a. Nishida is a corporation? b. Nishida is an S corporation?
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.
Linda owns 40% of the stock in an S Corporation. Linda's basis in 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 the year. What should be Linda's basis in the S corporation stock on December 31, 2018?
Mr. Franklin Sharp owns 750 shares of Guard Inc. The ACB per share is $21.50. On June 15, 2023, he sells all of these shares for $13.75 each. On June 21, 2023, he purchases 400 shares of Guard Inc. at a cost of $12.15 each. He continues to own the shares at the end of the year. What are the income tax consequences of these transactions including the ACB of the shares on hand at December 31, 2023?
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John bought 1,000 shares of Intel stock on October 18, 2018 for $30 per share plus a $750 commission he paid to his broker. On December 12, 2022, he sells the shares for $42.50 per share. He also incurs a $1,000 fee for this transaction. What is 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?
Answer the following. Thank you!
Tammy bought 100 shares of stock on January 30, 2021 when the share price was $20. She sold the stock for $24 a share on January 31, 2022. What is the gain or loss from this transaction? Is it a long- or short-term capital gain or loss?
Garth is a shareholder in a calendar year S corporation. At the beginning of 2020, his stock basis is $ 20,000, his share of the AAA is $ 4,000, and his share of corporate AEP is $ 12,000. He receives a $17,000 distribution, and his share of S corporation items includes a $ 12,000 long- term capital gain and a $( 7,000) operating loss (i.e. a non-separately stated loss) . Determine the ending balance that Garth has in his stock basis, AEP and AAA
Garth is a shareholder in a calendar year S corporation. At the beginning of 2020, his stock basis is $ 20,000, his share of the AAA is $ 4,000, and his share of corporate AEP is $ 12,000. He receives a $17,000 distribution, and his share of S corporation items includes a $ 12,000 long- term capital gain and a $( 7,000) operating loss (i.e. a non-separately stated loss) . Determine income, gain, and/or loss that Garth will show on his 2020 1040 return.
(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?
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