1. You are given the following facts about a 50% owner of an Scorporation. Compute her ending stock basis. Increase in AAA $32,000 Increase in OAA 6,300 Payroll tax penalty 2.140 Owner's beginning stock basis 39,800 Tax-exempt interest income 4.800 Insurance premiums paid (nondeductible) 2,700 Owner's additional stock purchases 22.000 Owner's 20% QBI deduction 21.000 a. S80,950. b. $85,750. c. $100,100 d. S106,225 2. On January 2, 2019, David loans his corporation $10,000. By the end of 2019 David's stock basis is zero and the basis in his note has been reduced to $8,000. During 2020, the company's operating income is $10,000. The company makes 2020 distributions to David of $11.000. David reports a: a $1.000 LTCG b. $3,000 LTCG c. $11.000 LTCG d. Loan basis of $10,000. Page 1 of 7