LO.8 Ida owns 30% of the stock in Mockingbird, a calendar year S corporation. Her basis in the stock as of January 1, 2012, is $120,000. Mockingbird has an operating loss of

$500,000 in 2012 and an operating profit of $600,000 in 2013. Ida withdraws $70,000 in cash from the corporation in 2013.

a. What are Ida’s tax consequences in 2012?

b. 2013?

c. What is Ida’s basis in her Mockingbird stock as of January 1, 2013?

d. January 1, 2014?