Barb and Chuck each own one-half the stock of Wren, Inc., an S corporation. Each shareholder has a stock basis of $100,000. Wren has no accumulated E & P. Wren's taxable income for the current year is $80,000, and it distributes $50,000 to each shareholder. Barb's stock basis at the end of the year is?

A) $50,000

B) $90,000

C) $100,000

D) $140,000

E) None of the above

Barb and Chuck each own one-half of the stock of Wren, Inc., a C corporation. Each shareholder has a stock basis of $100,000. Wren has accumulated E & P of $500,000. Wren's taxable income for the current year is $80,000, and it distributes $50,000 to each shareholder. Barb's stock basis at the end of the year is?

A) $50,000

B) $90,000

C) $100,000

D) $140,000

E) None of the above

Moira contributed cash of $25,000 and land (adjusted basis of $55,000; fair market value of $175,000) to an entity for a 75% ownership interest. The entity was created three years ago by Brevin with a contribution of $50,000 in cash. Which of the following statements is correct?