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.

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Definitions:

Commanding People

The act of directing or controlling individuals or groups with authority, often without discussion or input from those being commanded.

Implementing Policies

The process of putting plans, guidelines, or rules into effect to achieve desired outcomes.

Valuing People

Recognizing and appreciating the worth, capabilities, contributions, and potential of individuals within an organization or society.

Problem-Solving

The process of finding solutions to difficult or complex issues.