For each of the following independent statements, indicate whether the transaction will increase (+), decrease (), or
Question:
For each of the following independent statements, indicate whether the transaction will increase (+), decrease (–), or have no effect (NE) on the basis of a shareholder’s stock in an S corporation.
a. Expenses related to tax-exempt income.
b. Short-term capital gain.
c. Non-separately computed loss.
d. Section 1231 gain.
e. Depletion not in excess of basis.
f. Separately computed income.
g. Nontaxable return-of-capital distribution by the corporation.
h. Advertising expenses.
i. Business gifts in excess of $25.
j. Depreciation recapture income.
k. Dividend income received by the S corporation.
l. LIFO recapture tax paid.
m. Collection of a bad debt previously deducted.
n. Long-term capital loss.
o. Cash distribution to shareholder out of AAA.
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Step by Step Answer:
South Western Federal Taxation 2016 Corporations Partnerships Estates And Trusts
ISBN: 9781305399884
39th Edition
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young