Lavery Corporation Has Two Equal Shareholders, and Has Been an Electing

question 84

Multiple Choice

Lavery Corporation has two equal shareholders, and has been an electing S corporation since its inception. In the current year, Lavery has taxable income of $60,000. This amount includes $50,000 from operations and $10,000 from investment interest income. Because of these events, each shareholder's adjusted basis in the stock will increase by

• A)$- 0 -
• B)$10,000
• C)$25,000
• D)$30,000
• E)$50,000

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Definitions:

Nondisjunction

A genetic anomaly during cell division where chromosomes fail to separate properly, leading to gametes with abnormal numbers of chromosomes.

XY Pair

Refers to the male sex chromosomes in humans and most other mammals where XY denotes a male genotype.

Reciprocal Translocation

A genetic phenomenon where parts of two different chromosomes exchange places without changing the total amount of genetic material.

Homologous Chromosomes

Pairs of chromosomes in a diploid organism that are similar in shape, size, and genetic content but may carry different alleles.