During 2016, Miles Nutt, the Sole Shareholder of a Calendar

question 50

Multiple Choice

During 2016, Miles Nutt, the sole shareholder of a calendar year S corporation, received a distribution of $16,000. On December 31, 2015, 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 is $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:

Ethnicity

Refers to the shared cultural practices, perspectives, and distinctions that set apart one group of people from another.

Gender Stereotyping

The oversimplified and generalized beliefs about the characteristics, attributes, and roles of individuals based solely on their gender.

Gender-Aschematic

Pertaining to individuals who do not consistently use gender categories as a way of processing information about people.

Menstruation

The monthly discharge of blood and mucosal tissue from the inner lining of the uterus through the vagina.