Sale of S Corporation Stock. Jordan owned a 10% interest in an S corporation for several years. The basis of his stock on January 1, 2019 is $40,000. On April 30, 2019, Jordan sells his entire interest in the S corporation for $58,000. For the calendar year 2019, the S corporation estimated that its ordinary income would be $80,000. No distributions were made in 2019 prior to the sale of Jordans stock.

a. On April 30, 2019, the date of sale, what is the expected gain Jordan will report on his 2019 tax return as the result of the sale of his stock?

b. At year-end, the S corporation determines that its actual ordinary income for 2019 is $100,000. On the basis of this year-end knowledge, does this additional information affect Jordans 2019 tax return? If so, how is the 2019 tax return affected, and if it is ot affected, why not?