Bryan Corporation,an S Corporation Since Its Organization,is Owned Entirely by Mr.Bryan.The

question 8

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: $$\begin{array} { | l | r | } \hline \text { Ordinary Income } & \$ 65,000 \\\hline \text { Dividend Income } & 20,000 \\\hline \text { Short-term capital loss } & ( 2,000 ) \\\hline\end{array}$$ 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:

Decoding Ability

The skill or capability to interpret and understand messages or signals correctly.

Display Rule

Cultural norms that dictate the appropriate emotional responses to situations.

Feeling Rule

Social norms that dictate the appropriate emotions to be expressed in different situations, influencing how individuals manage their emotional responses.

Independent Self

A psychological concept referring to individuals who define themselves in terms of their personal attributes, achievements, and goals.