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William is the sole shareholder of Tremer, inc., a calendar-year S corporation. The basis of Williams stock at January 1, 20X1, is $15,000. Tremer, Inc.,
William is the sole shareholder of Tremer, inc., a calendar-year S corporation. The basis of Williams stock at January 1, 20X1, is $15,000. Tremer, Inc., shows the following for the taxable year ending December 31, 20X1:
Short-term capital gain $4,000
Tax penalties $1,000
Taxable loss $12,000
Section 1231 loss $2,000
What is the basis of Williams stock at December 31, 20X1?
A. $4,000
B. $7,000
C. $12,000
D. $18,000
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