Question $17$:

Brown and Johnella each own one$-$half $(1/2)$ of the stock of Phillips Corporation, an S Corporation. Each shareholder has an Adjusted Basis in her stock of $$100,000.$ Phillips Corporation has no Accumulated Earnings And Profits $($AEP$).$ Phillips Corporation's Taxable Income for the current year is $$80,000$ and it distributes $$50,000$ to each shareholder. Brown's basis in her stock at the end of the year is $$50,000.$

A$.$ False

B$.$ True