A calendar year business reports the following information as of the end of 2020 and 2021: H,
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Question:
A calendar year business reports the following information as of the end of 2020 and 2021:
H, a 30% owner, had a basis in the business at the end of 2019 of $9,000. Calculate H’s basis in his ownership interest at the end of 2021 assuming the business is one of the following.
- A partnership.
- An S corporation.
Transcribed Image Text:
2020 2021 Accounts Payable to Suppliers $10,000 $11,000 Note Payable to City Bank $40,000 $37,000 Note Payable to H $12,000 $10,000 Cash distributions to owners $20,000 Net Ordinary Income $15,000 S15,000 2020 2021 Accounts Payable to Suppliers $10,000 $11,000 Note Payable to City Bank $40,000 $37,000 Note Payable to H $12,000 $10,000 Cash distributions to owners $20,000 Net Ordinary Income $15,000 S15,000
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Net amount available at end of 2020 cash distributions to owners ner ordinary income accounts ... View the full answer
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