During 2012, Rasic, the Sole Shareholder of a Calendar Year

question 142

Essay

During 2012, Rasic, the sole shareholder of a calendar year S corporation, received a distribution of $16,000. On December 31, 2011, Rasic's stock basis was $4,000. The corporation earned $11,000 ordinary income during the year. Calculate the amount and type of income that Rasic recognizes in 2012, assuming that there is no C corporation AEP.

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Definitions:

Rigid Superegos

A condition characterized by extremely strict or inflexible moral beliefs and self-critical standards.

Introverted Loners

Individuals who prefer solitary activities and enjoy spending time alone, often feeling drained by social interactions.

Future Achievements

Goals or accomplishments an individual aims to realize in the future, often motivating present actions and planning.

Performance Attainment

The achievement of performance goals or targets, typically within a specified time frame or under certain conditions.