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. $$\begin{array} { l r } \text { Beginning stock basis } & \$ 52,600 \\\text { Purchases of additional stock } & 15,000 \\\text { Insurance premiums paid (nondeductible) } & 3,600 \\\text { Tax-exempt interest income } & 5,230 \\\text { Payroll tax penalty } & 3,770 \\\text { Increase in AAA } & 22,400 \\\text { Increase in OAA } & 5,800\end{array}$$

Examine factors that cause shifts in the consumption function.

Analyze the effects of changes in wealth and interest rates on consumption.

Understand the relationship between bond prices and yields, including yield to maturity (YTM), current yield, and yield to call (YTC).

Comprehend the impact of interest rate changes on bond prices and yields.

---

Definitions:

Seniority Rights

Entitlements or privileges that are given to employees based on their length of service or tenure with the employer, often affecting promotions, layoffs, and other job-related decisions.

Bumping Rights

Rights that allow senior employees to take the positions of less senior employees during layoffs, based on the principle of seniority.

Grievances

Complaints or disputes workers bring forward concerning violations of their rights or dissatisfaction with conditions of their employment.

Compulsory Arbitration

A legal requirement for disputes, especially labor disputes, to be settled by an impartial arbitrator whose decision is final and binding.