11. LO.6 For each of the following independent statements, indicate whether the transaction will increase (1), decrease...
Question:
11. LO.6 For each of the following independent statements, indicate whether the transaction will increase (1), decrease (2), or have no effect (NE ) on the basis of a shareholder’s stock in an S corporation.
a. Expenses related to tax-exempt income.
b. Short-term capital gain.
c. Nonseparately computed loss.
d. Section 1231 gain.
e. Depletion not in excess of basis.
f. Separately computed income.
g. Nontaxable return-of-capital distribution by the corporation.
h. Advertising expenses.
i. Business gifts in excess of $25.
j. Depreciation recapture income.
k. Dividends received by the S corporation.
l. LIFO recapture tax paid.
m. Long-term capital loss.
n. Cash distribution to shareholder out of AAA (with positive stock basis).
Step by Step Answer:
Essentials Of Taxation Individuals And Business Entities
ISBN: 233160
1st Edition
Authors: Nellen/Young/Raabe/Maloney