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Greg Brady formed Johnny Bravo, Inc. (JBI) on January 1, 20x1 by contributing $100,000 in exchange for 100% of JBI stock. JBI immediately (and properly)
Greg Brady formed Johnny Bravo, Inc. (JBI) on January 1, 20x1 by contributing $100,000 in exchange for 100% of JBI stock. JBI immediately (and properly) elected S corporation status. During 20x1, JBI earned taxable income of $20,000 and tax-exempt interest of $2,000. JBI also distributed $6,000 in cash out to Greg during 20x1. At December 31, 20x1, JBI’s only liability was a loan payable to U.S. Bank for $30,000.
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To calculate Gregs basis in his JBI stock on December 31 20x1 we need to consider the initial contri...
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Advanced Financial Accounting
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
6th edition
013703038X, 978-0137030385
