Which, If Any, of the Following Items Has No Effect

question 123

Multiple Choice

Which, if any, of the following items has no effect on the stock basis of an S corporation shareholder?

• A)Short-term capital loss.
• B)Long-term capital gain.
• C)Cost of goods sold.
• D)Net sales.
• E)A mortgage taken by the S corporation.

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Definitions:

Suppress Dissension

The act of preventing or reducing disagreement or opposition, typically within a group or organization.

Deindividuation

A psychological state characterized by diminished self-consciousness, reduced social identity, and disinhibited behavior, often occurring in group settings.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.

Self-Serving Bias

The common habit of a person taking credit for positive events or outcomes, but blaming outside factors for negative events.