$97.$ An individual owns $100\%$ of the stock of an S corporation. At the beginning of the year, the basis for that stock is $$210,000.$

During the year, the corporation has ordinary income of $$80,000,$ municipal bond tax$-$exempt interest income of $$10,000,$ taxable bond income of $$3,000,$ long$-$term capital losses of $$20,000,$ and a short$-$term capital loss of $$5,000$

The corporation's tax year is the same as the calendar year.

What is the individual's basis at the end of the year?

$$ $$210,000$

$$ $$275,000$

$278,000$

$$ $$303,000$

$98.$ An individual owns $50\%$ of an S corporation and is also owed $$100,000$ by the corporation at the start of the year. The stock basis at the start of the year is $$300,000.$

During the next two years, the corporation has a $$100,000$ operating loss in year one, followed by a $$250,000$ operating profit.

What are the individual's stock and debt bases at the end of the second year?

$$ Stock basis of $$250,000$ and debt basis of $$225,000$

$$ Stock basis of $$375,000$ and debt basis of $$100,000$

$$ Stock basis of $$425,000$ and debt basis of $$50,000$

$$ Stock basis of $$425,000$ and debt basis of $$100,000$

$99.$ Under which section are gains required to be recognized as either the lesser of precontribution net gains or the excess of the fair market value of distributed property over the adjusted partnership basis?

$$ Section $731$

$$ Section $737$

$$ Section $751$

Section $757$

$100.$ How may S corporation shareholders increase their ability to deduct a corporate loss?

$$ By loaning funds to the corporation

$$ By guaranteeing a debt owed by the corporation

$$ By receiving a cash distribution from the corporation

$$ By selling assets to the corporation at fair market value

$101.$ Which election may be made to allocate an S corporation's income based on its accounting methods following the termination of the S corporation election?

O Using the specific identification method to allocate income

O Changing the corporation's tax year

O Changing the corporation's accounting method

O Making a deemed distribution out of accumulated earnings and profits