You Are Given the Following Facts About a 40% Owner

question 86

Multiple Choice

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

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

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