Tony Is the 100% Shareholder of a Corporation Established Five

question 96

Multiple Choice

Tony is the 100% shareholder of a corporation established five years ago.It has always been an S corporation.After adjustment for this year's corporate income,but before taking distributions into account,Tony has a $50,000 stock basis.The corporation pays Tony a $40,000 cash distribution.As a result of this distribution,Tony will have an ending stock basis and recognized income of

---

Definitions:

Agricultural Corporations

Large companies involved in the production, marketing, and distribution of agricultural goods such as crops and livestock.

Backcountry Farmland

Rural areas typically found in the hinterlands of a country, known for agricultural production often characterized by less fertile soil and more challenging farming conditions compared to prime agricultural lands.

Crop Failure

An event where agricultural crops grown do not produce a sufficient yield, often due to weather conditions, pests, disease, or lack of resources.

Agrarian Colony

A settlement primarily engaged in agriculture, established for the purpose of producing crops and livestock.