Bev and Cabel Each Own One-Half of the Stock of Finch

question 26

Multiple Choice

Bev and Cabel each own one-half of the stock of Finch, Inc., an S corporation with no accumulated E & P. Bev's basis in the Finch stock is $225,000. Finch's taxable income for the current year is $100,000, and it distributes $180,000 to each shareholder. Bev's stock basis at the end of the year is:

• A)$0.
• B)$45,000.
• C)$95,000.
• D)$100,000.
• E)None of the above.

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Definitions:

Mutations

Changes in the nucleotide sequence of the genetic material of an organism, which can lead to variations in traits.

Genetic Diversity

The total number of genetic characteristics in the genetic makeup of a species, providing the necessary variation for populations to adapt to changing environments.

Adapters

In molecular biology, molecules or structures that enable the interaction of otherwise incompatible entities, such as certain molecular complexes.

tRNA

Transfer RNA, a type of RNA molecule that helps decode a messenger RNA sequence into a protein during protein synthesis.