You Are Given the Following Facts About a 50% Owner

question 71

Multiple Choice

You are given the following facts about a 50% owner of an S corporation.Compute her ending stock basis. $\begin{array}{lr}\text { Increase in AAA } & \$ 32,000 \\\text { Increase in OAA } & 6,300 \\\text { Payroll tax penalty } & 2,140 \\\text { Owner's beginning stock basis } & 39,800 \\\text { Tax-exempt interest income } & 4,800 \\\text { Insurance premiums paid (nondeductible) } & 2,700 \\\text { Owner's additional stock purchases } & 22,000\end{array}$ ?

• A)$80,950.
• B)$85,750.
• C)$100,100.
• D)$106,225.

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Definitions:

Esteem Support

Emotional support aimed at bolstering an individual's self-esteem and confidence.

Self-Disclosure

The act of sharing one's personal thoughts, feelings, or experiences with others, which can deepen relationships and foster closer bonds.

Gross Profit

The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

Net Sales

The total revenue generated from goods or services sold, after deducting returns, allowances for damaged or missing goods, and discounts.