Mindy, an individual, owns 100% of Markee, an S corporation, and she has an initial stock basis
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Mindy, an individual, owns 100% of Markee, an S corporation, and she has an initial stock basis of $10,000. This is the first year of Markee’s operations. Additional items reported by Markee during the current year are:
Municipal bond interest ....................... $10,000
Ordinary income .......................................... 3,400
Shareholder distributions ......................... 5,000
What was Mindy’s basis in Markee at the end of the tax year?
a. $5,000
b. $8,400
c. $15,000
d. $18,400
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d 18400 Mindys initial basis of 10000 will be increased b...View the full answer
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Related Book For
South Western Federal Taxation 2018 Corporations Partnerships Estates And Trusts
ISBN: 1389
41st Edition
Authors: William H. Hoffman, William A. Raabe, James C. Young, Annette Nellen, David M. Maloney
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