You Are Given the Following Facts About a 40% Owner

question 92

Multiple Choice

You are given the following facts about a 40% owner of an S corporation, and you are asked to prepare her ending stock basis. $$\begin{array} { l r } \text { Owner's beginning stock basis } & \$ 36,800 \\\text { Increase in AAA } & 32,000 \\\text { Increase in OAA } & 6,300 \\\text { Payroll tax penalty } & 2,140 \\\text { Tax-exempt interest income } & 4,800 \\\text { Life insurance premiums paid } & 2,700 \\\text { (nondeductible) } & \\\text { Owner's purchases of additional stock } & 22,000\end{array}$$ ?

• A)$71,600
• B)$74,120
• C)$76,220
• D)$78,920

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Definitions:

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