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

question 628

Multiple Choice

Bryan Corporation, an S corporation since its organization, is owned entirely by Mr. Bryan. The corporation uses calendar year as its taxable year. Mr. Bryan paid $120,000 for his Bryan stock when the corporation was formed o 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) $203,000
• B) $205,000
• C) $165,000
• D) $163,000

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