You Are a 60% Owner of an S Corporation

question 139

Essay

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

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Definitions:

Business Model

A conceptual framework that outlines how a company creates, delivers, and captures value.

Stakeholder

An individual or group with an interest or concern in the success and operations of a business, project, or endeavor, which can include customers, employees, investors, suppliers, and the community.

Employee

An individual who works part-time or full-time under a contract of employment, contributing labor and expertise to an employer.

Customer

An individual or business that purchases goods or services from another entity, often considered the most significant component in the business world.