Bev and Cabel Each Own One-Half of the Stock of Finch,Inc.,a

question 127

Multiple Choice

Bev and Cabel each own one-half of the stock of Finch,Inc.,a C corporation.Each shareholder has a stock basis of $225,000.Finch has accumulated E & P of $600,000.Finch's taxable income for the current year is $100,000,and it distributes $180,000 to each shareholder.Bev's stock basis at the end of the year is:

• A)$0.
• B)$45,000.
• C)$95,000.
• D)$100,000.
• E)None of the above.

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Definitions:

African-Americans

An ethnic or racial group in the U.S. that has heritage from any of the African black racial groups.

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