#3
You are given the following facts about a solely owned S
corporation. What is the shareholder's ending stock
basis?
| Increase in AAA | $31,000 |
| Increase in OAA | 6,300 |
| Payroll tax penalty | 2,140 |
| Beginning stock basis | 39,800 |
| Stock purchases | 22,000 |
| Tax-exempt life insurance proceeds | 4,800 |
| Life insurance premiums paid (nondeductible) | 2,700 |
a.$61,800
b.$68,100
c.$99,100
d.$100,100
Answer: c.$99,100
Explanation
Shareholder's ending stock basis = Beginning stock basis +Increase in AAA + Increase in OAA + Stock purchases
= $ 39,800 + 31,000 + 6,300 + 22,000
= $ 99,100
#3 You are given the following facts about a solely owned S corporation. What is the...
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