In General, an S Corporation Shareholder Makes Increasing Adjustments to Her

question 118

True/False

In general, an S corporation shareholder makes increasing adjustments to her basis first, followed by adjustments that decrease basis.

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Definitions:

Hydroxide

A negatively charged ion (OH-) consisting of oxygen and hydrogen.

Diazomethane

A highly reactive organic compound with the formula CH2N2, used in organic synthesis to introduce methyl groups or to form diazo compounds.

Carbene

A highly reactive molecule featuring a carbon atom with two non-bonded electrons and six valence electrons in total.

Carbanion

An ion that contains a negatively charged carbon atom, often a reactive intermediate in organic reactions.