Barb and Chuck Each Own One-Half of the Stock of Wren

question 32

Multiple Choice

Barb and Chuck each own one-half of the stock of Wren, Inc., a C corporation. Each shareholder has a stock basis of $175,000. Wren has accumulated E & P of $300,000. Wren's taxable income for the current year is $100,000, and it distributes $75,000 to each shareholder. Barb's stock basis at the end of the year is:

• A)$0.
• B)$100,000.
• C)$150,000.
• D)$175,000.
• E)None of the above.

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Definitions:

Khoisan

A term used to refer to the indigenous populations of Southern Africa, particularly known for their languages characterized by distinctive click sounds and for their hunter-gatherer and pastoralist cultures.

Endangered Tradition

A cultural practice or ritual that is at risk of disappearing or losing its original significance.

Great Apes

A group of primates that includes gorillas, chimpanzees, orangutans, and bonobos, known for their intelligence and close genetic relationship to humans.