Which of the Following Is Not an Adjustment to an S

question 125

Multiple Choice

Which of the following is not an adjustment to an S corporation shareholder's stock basis?

• A) Increase for shareholder's share of ordinary business income.
• B) Decrease for shareholder's share of nondeductible items.
• C) Increase for any contributions to the S corporation during the year.
• D) Increase for distributions during the year.
• E) None of the choices are correct.

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Definitions:

Closed-shop Agreement

A labor agreement requiring employees to be members of a union as a condition of employment, typically illegal in the U.S. under the Taft-Hartley Act.

Resistance Point

The maximum point of opposition or pushback in negotiations or discussions.

Pay Increase

An upward adjustment in an individual's salary or wages, often recognized as a reward for performance or due to changes in market conditions.

Labor Negotiations

The process of collective bargaining between employers and employees (or their representatives) over wages, working conditions, benefits, and other aspects of workers' compensation and rights.