Venice Corp is an S Corp with only one shareholder and that shareholder's stock basis is $1,000. If Venice Corp has $50,000 of ordinary income and $55,000 of shareholder distributions in its first year, what is the shareholder's capital gain at the end of year one A. $0 B. $1,000 C. $4,000 D. $50,000 E. $55,000

Venice Corp is an S Corp with only one shareholder and that shareholder's stock basis is $1,000. If Venice Corp has $50,000 of ordinary income and $55,000 of shareholder distributions in its first year, what is the shareholder's capital gain at the end of year one A. $0 B. $1,000 C. $4,000 D. $50,000 E. $55,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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