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

question 129

Multiple Choice

Bev and Cabel each own one-half of the stock of Finch,Inc.,an S Corporation.Each shareholder has a stock basis of $225,000.Finch has no accumulated E & P.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:

America Invents Act

A significant reform to the United States patent system, implemented in 2011, aimed at streamlining the patent process and adopting a "first-to-file" system.

Inter Partes Review

A trial proceeding conducted at the Patent Trial and Appeal Board to review the patentability of one or more claims in a patent, as requested by a third party.

Federal Trademark Protection

A legal framework provided by the federal government that gives the owner of a registered trademark exclusive rights to its use in connection with the goods or services listed in the registration.

Non-Use

The state of not using something, especially a right or property, which can lead to legal implications.