Ida owns 30% of the stock in Mockingbird, a calendar year S corporation. Her basis in the

Question:

Ida owns 30% of the stock in Mockingbird, a calendar year S Her basis in the stock as of January 1, 2016, is $120,000. Mockingbird has an operating loss of $500,000 in 2016 and an operating profit of $600,000 in 2017. Ida withdraws $70,000 in cash from the in 2017.
a. What are Ida's tax consequences in 2016?
b. 2017?
c. What is Ida's basis in her Mockingbird stock as of January 1, 2017?
d. January 1, 2018?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...