Carol Is a 60% Owner of a Business Entity and Has

question 41

True/False

Carol is a 60% owner of a business entity and has an adjusted basis in such interest of $60,000.For the current tax year,the entity has profits of $50,000.If the entity is a C corporation,the corporate profits have no effect on Carol's basis in her stock.However,if the entity is an S corporation,Carol's basis increases to $90,000 [$60,000 + (60% * $50,000)].

---

Definitions:

Nomadic

Pertaining to communities or individuals that move from place to place rather than settling permanently in one location.

Ju/'hoansi

A hunter-gatherer people living in the Kalahari Desert of southern Africa, known for their rich cultural traditions and survival skills in a harsh environment.

Medical Mediation

A process in which a neutral third party helps resolve disputes or communication issues within the medical context, especially between patients and healthcare providers.

Psychological Disorders

Mental health conditions characterized by disruptions in thinking, feeling, mood, and behavior, leading to varying levels of distress or impairment in daily functioning.