Both Thu and Tuan Own One-Half of the Stock of Wren

question 41

Multiple Choice

Both Thu and Tuan own one-half of the stock of Wren, Inc., a C corporation. Each shareholder holds a stock basis of $175,000. Wren has accumulated E & P of $300,000. Wren's taxable income for the current year is $100,000, and it distributes $75,000 to each shareholder. Thu's stock basis at the end of the year is:

• A) $0.
• B) $100,000.
• C) $150,000.
• D) $175,000.

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Definitions:

Cognitive Component

involves the thoughts, beliefs, and knowledge a person has about a situation, object, or concept.

A-B-C Model

A framework in psychology that describes the relationships between an Antecedent (A), Behavior (B), and Consequence (C).

Behavior Modification

The use of empirically demonstrated techniques to improve behavior, often by changing the environmental cues and consequences associated with the behavior.

Contingency of Reinforcement

A concept in behavior analysis that describes how the timing and frequency of reinforcement strategies can influence behavior.