Question
Oak corp, a calender year corporation was formed three years ago by its sole shreholder, Glover, and has always operated as a c corporation. However,
Oak corp, a calender year corporation was formed three years ago by its sole shreholder, Glover, and has always operated as a c corporation. However, at the begining of this year Glover msde a qualifying s election for Oak corp, effective Jan1 Oak corp did not have any any c corporation earnings and profits on that date. On June 1 Oak corp distributed 15000 to Glover. a, At the time of distribution, Glover basis in his Oak corp was 35000 b. At the time of distribution, Glover basis in his Oak corp stock was $8000 , c, At the time of distribution, Glover basis on Oak corp stock was 0
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