Both Tracy and Cabel Own One-Half of the Stock of Finch

question 47

Multiple Choice

Both Tracy and Cabel own one-half of the stock of Finch, Inc., an S corporation with no accumulated E & P. Tracy's basis in the Finch stock is $225,000. Finch's taxable income for the current year is $100,000, and it distributes $180,000 to each shareholder. Tracy's stock basis at the end of the year is:

• A) $-0-.
• B) $45,000.
• C) $95,000.
• D) $100,000.

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Definitions:

Stem-and-Leaf Display

A graphical method of displaying quantitative data to observe its distribution, resembling a histogram turned on its side for clearer numeric value reading.

Diastolic

refers to the blood pressure in the arteries when the heart rests between beats.

Split Stems

A method in stem-and-leaf plots where stems are divided into two or more parts to spread out the data for a clearer representation.

Stem-and-Leaf Display

A stem-and-leaf display is a graphical method for displaying quantitative data, allowing for the observation of the data’s shape and distribution by organizing numbers based on their leading digits (stems) and trailing digits (leaves).