The Haas Corp., a calendar year S corporation, has two equal shareholders. For the year ended December 31, year 6, Haas had net income of $60,000, which included $50,000 from operations and $10,000 from investment income. There were no other transactions that year. Each shareholder's basis in teh stock of Haas will increase by: $50,000, $30,000, $25,000 or $0
The Haas Corp., a calendar year S corporation, has two equal shareholders. For the year ended December 31, year 6, Haas had net income of $60,000, which included $50,000 from operations and $10,000 from investment income. There were no other transactions that year. Each shareholder's basis in teh stock of Haas will increase by: $50,000, $30,000, $25,000 or $0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The Haas Corp., a calendar year S corporation, has two equal shareholders. For the year ended December 31, year 6, Haas had net income of $60,000, which included $50,000 from operations and $10,000 from investment income. There were no other transactions that year. Each shareholder's basis in teh stock of Haas will increase by:
$50,000, $30,000, $25,000 or $0
My answer $30,000
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There are no non-deductible expenses and non-taxable income for this question.
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