All of the Following Would Reduce the Basis of a Shareholder's

question 67

Multiple Choice

All of the following would reduce the basis of a shareholder's stock in an S corporation, except

• A) a shareholder's share of all loss and deduction items of the S corporation that are separately stated and passed through to the shareholder.
• B) a shareholder's pro rata share of nontaxable distributions by the S corporation to its shareholders.
• C) a shareholder's pro rata share of any nondeductible expenses of the S corporation.
• D) a shareholder's pro rata share of loan repayments made by the S corporation.

---

Definitions:

Nationwide

Pertaining to or covering all or most parts of a country.

Test Marketing

A trial mini-launch of a product in limited areas that represent the potential market.