Waters Corporation Is an S Corporation with Two Equal Shareholders,Mia

question 70

Multiple Choice

Waters Corporation is an S corporation with two equal shareholders,Mia Jones and David Kerns.This year,Waters recorded the following items of income and expense: Waters distributed $25,000 to each of its shareholders during the year.If Mia's adjusted tax basis in her partnership interest was $50,000 at the beginning of the year,compute her adjusted tax basis in her partnership interest at the end of the year.

• A)$93,000
• B)$118,000
• C)$50,000
• D)$85,000

---

Definitions:

Accounting

The recording, measurement, and interpretation of financial information.

Bookkeeping

The systematic recording of financial transactions and maintenance of financial records for a business or individual.