A Shareholder's Basis for the S Corporation Stock Is Adjusted

question 24

True/False

A shareholder's basis for the S corporation stock is adjusted for ordinary income or loss and separately stated items that flow through to the shareholders as well as for additional capital contributions by shareholders and distributions to shareholders.

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Definitions:

Syncline

A syncline is a fold in rock layers that slopes upward on both sides towards a central valley, usually indicating layers that were deposited in a basin.

Monocline

A geological fold in which all layers are inclined in the same direction, forming a step-like structure in the stratigraphy.

Sedimentary Rock

Rock formed by the deposition and subsequent cementation of mineral or organic particles on the floor of oceans or other bodies of water at the Earth's surface.

Metamorphic Equivalent

The rock type that results when another type of rock is subjected to metamorphism under specific conditions.