Bryan Corporation, an S Corporation Since Its Organization, Is Owned

question 74

Multiple Choice

Bryan Corporation, an S corporation since its organization, is owned entirely by Mr. Bryan. The corporation uses a calendar year as its taxable year. Mr. Bryan paid $120,000 for his Bryan stock when the corporation was formed on January 1 of this year. For this year, Bryan Corporation reported the following results: Distributions of $40,000 were made during the year. What is the basis of Mr. Bryan's stock on December 31?

• A)$163,000
• B)$165,000
• C)$203,000
• D)$205,000

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Definitions:

Competitive Advantage

The edge that gives organizations a more beneficial position than their competitors and allows them to generate more profits and retain more customers.

Inimitability

The quality of being impossible to copy or imitate, often contributing to a competitive advantage.

Organizational Behavior

studies how individuals and groups interact within a company and how these interactions affect the organization's functioning.

MacroEconomics

The branch of economics that studies the behavior and performance of an economy as a whole, focusing on broad phenomena like inflation, national income, and unemployment.