During 2013,Miles Nutt,the Sole Shareholder of a Calendar Year S

question 93

Multiple Choice

During 2013,Miles Nutt,the sole shareholder of a calendar year S corporation,received a distribution of $16,000.On December 31,2012,his stock basis was $4,000.The corporation earned $11,000 ordinary income during the year.It has no accumulated E & P.Which statement is correct?

• A)Nutt recognizes a $1,000 LTCG.
• B)Nutt's stock basis will be $2,000.
• C)Nutt's ordinary income is $15,000.
• D)Nutt's return of capital is $11,000.
• E)None of the above.

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Definitions:

Sexual Response Cycle

A sequence of physical and emotional phases that occur when an individual becomes sexually aroused and engages in sexually stimulating activities.

Hermaphrodite

An organism that has complete or partial reproductive organs and produces gametes normally associated with both male and female sexes.

Sexual Response

A series of physiological and emotional responses that occur in a sequence during sexual activity, often described in phases such as desire, arousal, orgasm, and resolution.

Heterosexual Contact

Sexual interaction between individuals of the opposite sex.