Question
At the beginning of the current year Erick invested $50,000 of cash in exchange for an 80% ownership Interest in TROY, Ltd. During the year
At the beginning of the current year Erick invested $50,000 of cash in exchange for an 80% ownership Interest in TROY, Ltd. During the year TROY experienced the following transactions:
Borrowed $10,000 from Erick
Generated Ordinary Business Income of $300,000
Borrowed $75,000 from Bank of America.
Made a proportionate current property distribution with a FMV of $100,000 and basis of $150,000
Assume the entity is organized as an S-corporation. What is Erick's ending stock basis in the entity?
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Expert Systems In Auditing
Authors: J C Van Dijk, Paul Williams, Michael P. Cangemi
1st Edition
1349124761, 978-1349124763
