During 2015,Miles Nutt,the Sole Shareholder of a Calendar Year S

question 143

Multiple Choice

During 2015,Miles Nutt,the sole shareholder of a calendar year S corporation,received a distribution of $16,000.On December 31,2014,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 tax-free return of capital is $11,000.
• E)None of the above.

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Definitions:

Preoperative Information

Information provided to patients about the surgical procedure, potential risks, and the recovery process before undergoing surgery.

Reassure

To give comfort or confidence to someone to alleviate their fears or concerns.

Coping Strategies

Techniques or methods used to manage stress, anxiety, or challenges in a healthier manner to minimize negative impacts on one’s life.

Anxiety Level

The degree to which an individual feels anxious or worried, ranging from mild to severe.