Which of the Following Is Not an Adjustment to an S

question 115

Multiple Choice

Which of the following is not an adjustment to an S corporation shareholder's stock basis?

• A) Increase for any contributions to the S corporation during the year.
• B) Increase for shareholder's share of ordinary business income.
• C) Decrease for shareholder's share of nondeductible items.
• D)Increase for distributions during the year.
• E)None of these

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Definitions:

Behavioral Economics

A field of economic research that analyzes how psychological, social, cognitive, and emotional factors affect economic decisions of individuals and institutions.

Ultimatum Games

A type of game in experimental economics where two players interact to decide how to divide a sum of money; one proposes the split, and the other accepts or rejects it.

Endowment Effect

A psychological phenomenon in which people assign higher value to things merely because they own them.