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Samantha owned 1,000 shares in Evita, Inc., an S corporation, that uses the calendar year. On...

Samantha owned 1,000 shares in Evita, Inc., an S corporation, that uses the calendar year. On October 11, 2014, Samantha sells all of her Evita stock. Her basis at the beginning of 2014 was $60,000. Her share of the corporate income for 2014 was $22,000, and she receives a distribution of $35,000 between January 1 and October 11, 2014. Her stock basis at the time of the sale is:

$117,000.

$82,000.

$60,000.

$47,000.

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Answer #1
Beginning basis (2014) $ 60,000.00
Share of corporate income (2014) $ 22,000.00
Distributions recevied between Jan 1 and oct 11, 2014 $ 35,000.00
Her stock basis at the time of the sale = Beginning basis + Share of the corporate income - Distributions received
60000 + 22000 - 35000		 $ 47,000.00
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