John owns all the stock of Lucas Corporation, an S corporation. Johns basis for the 1,000 shares

Question:

John owns all the stock of Lucas an S John’s basis for the 1,000 shares is $130,000. On June 11 of the current year (assume a non-leap year), John gifts 100 shares of stock to his younger brother Michael, who has been working in the business for one year. Lucas reports $125,000 of ordinary income for the current year. What amount of income is allocated to John? To Michael?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...