King Corporation, an Electing S Corporation, Is 100% Owned by Crystal

question 98

Essay

King Corporation, an electing S corporation, is 100% owned by Crystal. On January 1 of the current year, her adjusted basis in the King stock is $30,000. During the year, King reports an ordinary loss of $30,000, tax-exempt municipal bond income of $15,000, dividend income from domestic corporations of $5,000, a long-term capital loss of $20,000, and a short-term capital loss of $30,000. What is Crystal's basis for the King stock at the end of the year?

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Definitions:

Initial Demand

The initial interest or requirement for a product or service when it is first introduced to the market, influencing the success and strategy for new launches.

Radio Advertising

A form of marketing communication that uses radio waves to promote products, services, or ideas to the listening audience.

Cost-Effective Medium

A channel or method that offers the best value for money in terms of reaching a target audience or achieving marketing objectives.

Product Placement

A marketing strategy that involves placing branded goods or services within the context of popular culture, such as movies or television shows, to increase visibility.