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At the beginning of the tax year, Lizzie holds a $10,000 stock basis as the soleshareholder for Spike, Inc., an S corporation. During the year,
At the beginning of the tax year, Lizzie holds a $10,000 stock basis as the soleshareholder for Spike, Inc., an S corporation. During the year, Spike reports thefollowing. Determine Lizzies Stock basis at the end of the year, and the treatment of hercash distribution.Net taxable income from sales25,000Net short term capital loss (18000)Cash distribution to Lizzie 40000
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