Question: At the end of the year, before distributions, Bombay (an S corporation) has an accumulated adjustments account balance of $15,000 and accumulated E&P of $20,000

At the end of the year, before distributions, Bombay (an S corporation) has an accumulated adjustments account balance of $15,000 and accumulated E&P of $20,000 from a previous year as a C corporation. During the year, Nicolette (a 40 percent shareholder) received a $20,000 (the remaining shareholders received $30,000 in distributions). What is the amount and character of gain Nicolette must recognize from the What is her basis in her Bombay stock at the end of the year (assume her stock basis is $40,000 after considering her share of Bombay's income for the year but before considering the effects of the

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