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Herb is a 50% shareholder of MapMe, LLC., an S Corporation. MapMe, LLC. has the following tax items this year: Ordinary Business Income $170,000 Life
Herb is a 50% shareholder of MapMe, LLC., an S Corporation. MapMe, LLC. has the following tax items this year:
Ordinary Business Income $170,000
Life insurance proceeds from death of key officer $47,000
Premium paid on key officer life insurance $2,300
Section 1231 gain $3,300
Section 179 expenses $7,900
AAA, Jan 1 $46,000
OAA, Jan 1 $1,200
Herb's basis in his stock at the beginning of the year is $21,000. What is Herb's basis at the end of the tax year, and what are the ending balances in AAA and OAA?
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