All of the Following Would Reduce the Basis of a Shareholder's

question 99

Multiple Choice

All of the following would reduce the basis of a shareholder's stock in an S corporation,except

• A)a shareholder's pro rata share of nontaxable distributions by the S corporation to its shareholders.
• B)a shareholder's share of all loss and deduction items of the S corporation that are separately stated and passed through to the shareholder.
• C)a shareholder's pro rata share of any nondeductible expenses of the S corporation.
• D)a shareholder's pro rata share of loan repayments made by the S corporation.

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Definitions:

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a probability distribution describing the number of successes in a fixed number of independent Bernoulli trials, with a constant probability of success.

Bernoulli Experiment

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