What is an adjustment that is made annually to a stockholder's stock basis?

Decrease for distributions during the year

Decrease for the shareholder's share of ordinary business income

Increase for the shareholder's share of nondeductible expenses

Increase for distributions during the year

An individual owns $100\%$ of the stock of an S corporation. At the beginning of the year, the basis for that stock is $$210,000.$

During the year, the corporation has ordinary income of $$80,000,$ municipal bond tax$-$exempt interest income of $$10,000,$ taxable bond income of $$3,000,$ long$-$term capital losses of $$20,000,$ and a short$-$term capital loss of $$5,000$

The corporation's tax year is the same as the calendar year.

What is the individual's basis at the end of the year?

$$ $$210,000$

$$ $$275,000$

$278,000$

$$ $$303,000$

An individual owns $50\%$ of an S corporation and is also owed $$100,000$ by the corporation at the start of the year. The stock basis at the start of the year is $$300,000.$

During the next two years, the corporation has a $$100,000$ operating loss in year one, followed by a $$250,000$ operating profit.

What are the individual's stock and debt bases at the end of the second year?

Stock basis of $$250,000$ and debt basis of $$225,000$

Stock basis of $$375,000$ and debt basis of $$100,000$

Stock basis of $$425,000$ and debt basis of $$50,000$

Stock basis of $$425,000$ and debt basis of $$100,000$