Franco is a shareholder in an S corporation. At the beginning of the year, he purchased...

 

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Franco is a shareholder in an S corporation. At the beginning of the year, he purchased 1,500 shares of the corporation for $30,000. He then received a Schedule K-1 (Form 1120-S) for the same year reporting his share of the ordinary business income, $10,000. The only other item reported on the Schedule K-1 was a $2,000 cash distribution. What is Franco's year-end adjusted basis in the corporation? Franco is a shareholder in an S corporation. At the beginning of the year, he purchased 1,500 shares of the corporation for $30,000. He then received a Schedule K-1 (Form 1120-S) for the same year reporting his share of the ordinary business income, $10,000. The only other item reported on the Schedule K-1 was a $2,000 cash distribution. What is Franco's year-end adjusted basis in the corporation?

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Answer Initial Investment Franco purchased 1500 shares of ... View the full answer