Which of the Following Items Decrease Basis for a Stockholder

question 27

Multiple Choice

Which of the following items decrease basis for a stockholder of a Subchapter S corporation?

• A)Capital contributions.
• B)Charitable contributions.
• C)Loans from the shareholder to the corporation.
• D)Net income.

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Definitions:

Impracticable

A situation or task that is impossible to carry out or accomplish due to practical limitations.

Reasonable Commercial Standards

The accepted norms and practices within a specific industry that are considered fair and appropriate.

Honesty in Fact

A concept referring to the genuine intention or belief without intent to deceive in transactions or dealings.

Conform to Contract

The requirement that goods or services supplied under a contract must meet the specifications agreed upon in the contract.