Barb and Chuck each own one-half the stock of Wren, Inc., an S corporation. Each shareholder has
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Barb and Chuck each own one-half the stock of Wren, Inc., an S corporation. Each shareholder has a stock basis of $100,000. Wren has no accumulated E & P. Wren's taxable income for the current year is $80,000, and it distributes $50,000 to each shareholder. Barb's stock basis at the end of the year is?
A) $50,000
B) $90,000
C) $100,000
D) $140,000
E) None of the above
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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