You Are a 60% Owner of an S Corporation

question 49

Essay

You are a 60% owner of an S corporation. Calculate your ending stock basis, based upon these facts. $$\begin{array} { l r } \text { Beginning stock basis } & \$ 52,600 \\\text { Purchases of additional stock } & 15,000 \\\text { Insurance premiums paid (nondeductible) } & 3,600 \\\text { Tax-exempt interest income } & 5,230 \\\text { Payroll tax penalty } & 3,770 \\\text { Increase in AAA } & 22,400 \\\text { Increase in O A A} & 5,800\end{array}$$

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Definitions:

Logrolling

A practice in politics where two or more parties agree to vote for each other’s proposed legislations or interests, even if they are not in mutual support of the policies involved.

Fiscal Policy

Government strategies concerning spending and taxation to influence the economy, aiming to control inflation, unemployment, and encourage economic growth.

Government Spending

The total of all public expenditures made by government agencies, including investments and consumption.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid to lenders over a specified period.