A 20 shareholder began the year with an adjusted basis of $200,000 in a S corporation During the year, the corporation had ordinary income of $180,000, a capital gain of $20,000, a capital loss of $35,000, muni bond interest of $10,000, other interest income of $20,000, $10,000 of meals expense wer...

ANSWER 345000 Explanation The basi ...

A 20% shareholder began the year with an adjusted basis of $200,000 in a S corporation. During

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A 20% shareholder began the year with an adjusted basis of $200,000 in a S corporation. During the year, the corporation had ordinary income of $180,000, a capital gain of $20,000, a capital loss of $35,000, muni-bond interest of $10,000, other interest income of $20,000, $10,000 of meals expense were disallowed, and the shareholder received a $40,000 cash distribution. Calculate year-end basis.
1. $0
2. $197,000
3. $237,000
4. $345,000