What is the shareholder's basis in S Corp? `Shareholder buys 60% of S corp on 1/1 for 10,000 "Corp has 20,000 long term capital gains `Corp has a taxable income of 50,000 Corp distribution 20,000 to shareholder

What is the shareholder's basis in S Corp? `Shareholder buys 60% of S corp on 1/1 for 10,000 "Corp has 20,000 long term capital gains `Corp has a taxable income of 50,000 Corp distribution 20,000 to shareholder

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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Question

What is the shareholder's basis in S Corp?
'Shareholder buys 60% of S corp on 1/1 for
10,000
"Corp has 20,000 long term capital gains
`Corp has a taxable income of 50,000
`Corp distribution 20,000 to shareholder
A.60K
B.40K
C.32K
D.96K

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