You Are Given the Following Facts About a 50% Owner

question 61

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.

---

Definitions:

Inferential Statistics

The branch of statistics that allows for making predictions or inferences about a population based on a sample of data.

Descriptive Statistics

Statistical methods that summarize and organize data into patterns and trends, without drawing conclusions or inferring beyond the data.

Correlation Coefficient

A statistical measure that calculates the extent to which two variables change together or the degree of association between them.

Correlate

To have a mutual relationship or connection, in which one thing affects or depends on another.