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:

Radical Behaviorism

An approach in psychology that emphasizes the study of observable behavior and the role of the environment as a determinant of behavior, associated with B.F. Skinner.

Social Anxiety

A form of anxiety characterized by intense fear or discomfort in social situations, where one fears being judged or embarrassed.

Type A Behavior

A personality pattern characterized by high stress levels, impatience, aggressiveness, and a sense of urgency, often linked to heart disease risk.

Heart Disease

A term for various types of heart conditions that include coronary artery disease, heart attack, congestive heart failure, and congenital heart defects, among others.