You Are Given the Following Facts About a 50% Owner

question 7

Multiple Choice

You are given the following facts about a 50% owner of an S corporation. Compute her ending stock basis. $$\begin{array} { l r } \text { Increase in AAA } & \$ 32,000 \\\text { Increase in OAA } & 6,300 \\\text { Payroll tax penalty } & 2,140 \\\text { Owner's beginning stock basis } & 39,800 \\\text { Tax-exempt interest income } & 4,800 \\\text { Insurance premiums paid (nondeductible) } & 2,700 \\\text { Owner's additional stock purchases } & 22,000 \\\text { Owner's 20\% QBI deduction } & 21,000\end{array}$$

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

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Definitions:

Color Constancy

The ability of the human visual system to perceive colors of objects, invariant to the color of the light source.

Brain Region

Specific areas within the brain that are responsible for different functions, such as the hippocampus for memory or the frontal lobes for decision making.

Off-Surround Cell

A type of neuron in the visual system that is inhibited when light falls on its surrounding area, enhancing contrast detection.