You Are Given the Following Facts About a Solely Owned

question 64

Multiple Choice

You are given the following facts about a solely owned S corporation.What is the shareholder's ending stock basis? $\begin{array}{lr}\text { Increase in AAA } & \$ 31,000 \\\text { Increase in OAA } & 6,300 \\\text { Payroll tax penalty } & 2,140 \\\text { Beginning stock basis } & 39,800 \\\text { Stock purchases } & 22,000 \\\text { Tax-exempt life insurance proceeds } & 4,800 \\\text { Life insurance premiums paid } & 2,700\\\text { (nondeductible) }\end{array}$ ?

• A)$61,800
• B)$68,100
• C)$99,100
• D)$100,100

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Definitions:

Myelin

A fatty substance that surrounds and insulates the axons of many neurons, facilitating the rapid transmission of electrical impulses.

Reticular Formation

An extensive network of neurons located in the brainstem, playing a key role in controlling arousal, attention, and sleep-wake cycles.

Thalamus

A part of the brain located in the forebrain that functions as a relay station, processing and transmitting information from the sensory organs to the cerebral cortex.

Sensory Information

The data received by the senses such as sight, hearing, smell, taste, and touch, which is then interpreted by the brain.