Question
Barry buys a 20% interest in XYZ Corporation paying $100,000 cash on January 1, 2016. During 2016, XYZ Corporation reports a loss of $60,000 and
Barry buys a 20% interest in XYZ Corporation paying $100,000 cash on January 1, 2016. During 2016, XYZ Corporation reports a loss of $60,000 and pays cash dividends to shareholders of $5,000. For 2017, XYZ Corporation has income of $200,000 and pays cash dividends of $40,000. If XYZ company is organized as an S Corporation, Barry's basis in the XYZ Corporation stock at the end of 2017 is:
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Financial Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine, Christopher D. Burnley
8th Canadian Edition
111959457X, 978-1119594574
