Bev and Cabel Each Own One-Half of the Stock of Finch

question 26

Multiple Choice

Bev and Cabel each own one-half of the stock of Finch, Inc., an S corporation with no accumulated E & P. Bev's basis in the Finch stock is $225,000. Finch's taxable income for the current year is $100,000, and it distributes $180,000 to each shareholder. Bev's stock basis at the end of the year is:

• A)$0.
• B)$45,000.
• C)$95,000.
• D)$100,000.
• E)None of the above.

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Definitions:

Corporate City

A concept where a city is significantly influenced or controlled by corporate interests, affecting its development, governance, and culture.

Concentric Zone Model

A theory in urban sociology proposed by Ernest Burgess that describes urban land use in concentric circles, with the central business district in the center.

Residential Zone

An area designated by urban planning for housing and living purposes, often defined by specific regulations on types of dwellings and land use.

Postmodern City

A city characterized by diverse, complex social structures and environments, reflecting the fragmentation and pluralism of postmodern society.