Adhering to Current U.S. Tax Laws please respond to the following:

-Sally is the sole shareholder of an S corporation. At the beginning of the year her stock basis is $35,000. During the year the S corporation experienced the following:

Sales $50,000

Cost of goods sold 20,000

Tax-exempt interest income 4,000

Long-term capital gain 2,000

Advertising expenses 5,000

Charitable contribution 5,000

Distribution to Sally 24,000

What is Sallys stock basis at the end of the year?

-R is the sole shareholder of an S corporation. Rs tax basis in the stock of the S corporation is $200 at the beginning of Year 1. During Year 1, the S corporation has an $800 ordinary loss. R also loans the S corporation $500 in Year 1. In Year 2, the S corporation has a $600 ordinary income. Explain how much of the loss in Year 1 is deductible by R in Year 1 and in Year 2. Additionally, what is Rs stock basis and Rs debt basis at the end of Year 2?

-R, an individual, is the sole shareholder of an S corporation. The S corporation was once a C corporation and still has $300 in accumulated earnings and profits from the time it was a C corporation. R has a tax basis in his S corporation stock of $475. The S corporations AAA balance is $300. The S corporation has an OAA balance of $0. The S corporation distributes $1,000 in cash to R in a nonliquidating distribution. What are the income tax consequences to R, and what are the S corporations balances in its AAA and accumulated E&P after the distribution?

-R, an individual, is the sole shareholder of a C corporation. R has a stock basis of $30 in the C corporation. The C corporation has one asset, Blackacre (tax basis $60, fmv $100). The C corporation completely liquidates by distributing Blackacre to R. What are the income tax consequences to R as a result of the liquidation of the C corporation?

-Beth, an individual, owns 25% of Sandy Corporations single class of stock. Sandy Corporation is a C corporation. Beths tax basis in Sandy Corporations stock is $18,000. Sandy Corporations E&P is $26,000. Beth is not related to any other Sandy Corporation shareholder. If Sandy Corporation redeems all of Beths stock for $30,000, how much capital gain does Beth recognize?

-Stanley, Amber, and Martin are the only shareholders of SAM Corporation. SAM Corporation has only one class of stock outstanding. Stanley and Martin are brothers. Amber is Martins spouse (Stanleys sister-in-law). Stanley owns 40 shares of SAM, Amber owns 30 shares of SAM and Martin owns 30 shares of SAM. SAM Corporation redeems 25 of Martins shares for $10,000. Martins basis in those 25 shares is $7,000. Assume that SAM Corporations earnings and profits balance is $50,000. Explain the tax consequences to Martin on the redemption of the 25 shares. (Please analyze this problem using the substantially disproportionate redemption test.)

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