You Are Given the Following Facts About a 40% Owner

question 65

Multiple Choice

You are given the following facts about a 40% owner of an S corporation, and you are asked to prepare her ending stock basis. $$\begin{array} { l r } \text { Owner's beginning stock basis } & \$ 36,800 \\\text { Increase in AAA } & 32,000 \\\text { Increase in } O A A & 6,300 \\\text { Payroll tax penalty } & 2,140 \\\text { Tax-exempt interest income } & 4,800 \\\text { Insurance premiums paid (nondeductible) } & 2,700 \\\text { Owner's purchases of additional stock } & 22,000\end{array}$$ ?

• A)$71,600
• B)$74,120
• C)$76,220
• D)$78,920

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Definitions:

Highly Educated

Referring to individuals who have obtained a high level of formal education, often including college degrees or beyond.

Stepfamily Households

consist of family units formed by the marriage or partnership of individuals, at least one of whom has children from a previous relationship.

Nuclear Families

A family group consisting of parents and their children, considered as a basic social unit.

Stepparents

Individuals who are married to a parent but are not the biological parent of the parent's child or children.