Ramona Is a 50% Shareholder in a Subchapter S Corporation

question 114

Multiple Choice

Ramona is a 50% shareholder in a Subchapter S corporation.At the beginning of the year,her basis in the stock was $100,000.The corporation reported total ordinary income of $60,000 and total dividend income of $20,000.The corporation also borrowed an additional $20,000 from a local bank.What is the basis of Ramona's stock at the end of the year?

• A)$140,000.
• B)$150,000.
• C)$180,000.
• D)$200,000.

---

Definitions:

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment, often requiring the identification and separation of fact from opinion.

Quality Of Information

The degree to which information is accurate, reliable, relevant, and easily accessible.

Judging

The process of forming an opinion or conclusion about something or someone, often after careful consideration.

Environmental Change

Alterations in the natural environment caused by natural phenomena or human activities, impacting ecosystems and species.