You Are Given the Following Facts About a Solely Owned

question 10

Multiple Choice

You are given the following facts about a solely owned S corporation. What is the shareholder's ending stock basis? $\begin{array}{lr}\text { Increase in } A A A & \$ 31,000 \\\text { Increase in } O A A & 6,300 \\\text { Payroll tax penalty } & 2,140 \\\text { Beginning stock basis } & 39,800 \\\text { Stock purchases } & 22,000 \\\text { Tax-exempt insurance proceeds } & 4,800 \\\text { Insurance premiums paid (nondeductible) } & 2,700\end{array}$ ?

• A)$61,800
• B)$68,100
• C)$99,100
• D)$100,100
• E)Some other amount

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Definitions:

Tumor

An abnormal growth of tissue resulting from uncontrolled, progressive multiplication of cells and serving no physiological function; may be benign or malignant.

Skin Lesion

Any abnormal change in the skin's color or texture, often a sign of disease or injury.

Macule

A flat, distinct, discolored area of skin less than 1 centimeter wide that does not involve any change in the thickness or texture of the skin.