An S corporation has an accumulated adjustments account balance of $50,000 at the beginning of the year

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An S corporation has an accumulated adjustments account balance of $50,000 at the beginning of the year and accumulated earnings and profits of $20,000. The corporation earns $40,000 for the year.

The corporation makes a distribution of

$120,000. What would the sole shareholder's stock basis have to be at the beginning of the year to avoid any capital gain reporting?

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CCH Federal Taxation Basic Principles 2020

ISBN: 9780808051787

2020 Edition

Authors: Ephraim P. Smith, Philip J. Harmelink, James R. Hasselback

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Question Posted: Feb 27, 2024 03:05 AM

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An S corporation has an accumulated adjustments account balance of $50,000 at the beginning of the year

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To determine the sole shareholders stock basis needed to avoid any capital gain reporting we need to ...View the full answer

CCH Federal Taxation Basic Principles 2020

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