Mindy, an individual, owns 100% of Markee, an S corporation, and she has an initial stock basis
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Mindy, an individual, owns 100% of Markee, an S corporation, and she has an initial stock basis of $10,000. This is the first year of Markee’s operations. Additional items reported by Markee during the current year are:
Municipal bond interest ..................... $10,000
Ordinary income ........................................ 3,400
Shareholder distributions ....................... 5,000
What amount of the $5,000 distribution is taxable to Mindy?
a. $0
b. $1,600
c. $3,400
d. $5,000
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a 0 As a passthrough entity the income of an S corporation is taxable t...View the full answer
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Related Book For
South Western Federal Taxation 2018 Corporations Partnerships Estates And Trusts
ISBN: 1389
41st Edition
Authors: William H. Hoffman, William A. Raabe, James C. Young, Annette Nellen, David M. Maloney
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