On January 1, Year 1, Allen purchased 50% of the outstanding shares of an S corporation, Ball Enterprises, for $1,000. At year end, Ball had $5,000 in ordinary income, $1,000 in net income from rental real estate, and had made $2,000 in charitable contributions. Ball had also paid $700 to Allen's golf instructor and $300 for a titanium driver Allen uses as a member at his country club? What is Allen's basis in Ball Enterprises at the end of Year 1?

Answer rating: 100% (QA)

Allens basis in Ball Enterprises at the end of Year 1 is calculated as foll... View the full answer