59. LO.7 Ida owns 30% of the stock in Mockingbird, a calendar year S corporation. Her basis...

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59. LO.7 Ida owns 30% of the stock in Mockingbird, a calendar year S corporation. Her basis in the stock as of January 1, 2013, is $120,000. Mockingbird has an operating loss of

$500,000 in 2013 and an operating profit of $600,000 in 2014. Ida withdraws $70,000 in cash from the corporation in 2014.

a. What are Ida’s tax consequences in 2013?

b. 2014?

c. What is Ida’s basis in her Mockingbird stock as of January 1, 2014?

d. January 1, 2015?

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South-Western Federal Taxation 2014 Corporations Partnerships Estates And Trusts

ISBN: 9781285424484

37th Edition

Authors: William H. Hoffman Jr., William A. Raabe, James E. Smith, David M. Maloney, James C. Young

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Question Posted: Sep 06, 2024 11:01 AM

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59. LO.7 Ida owns 30% of the stock in Mockingbird, a calendar year S corporation. Her basis...

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South-Western Federal Taxation 2014 Corporations Partnerships Estates And Trusts

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