S CoPpPatIons Exam Question 10 of 50 Select the best answer Carol is the sole sh

Question

S CoPpPatIons Exam Question 10 of 50 Select the best answer Carol is the sole shareholder of Great, Inc., a calendar-year S corporation. The basis of her stock at January 1 20X1, is $50,000. Great, Inc., shows the following for the taxable year ending December 31, 20X1: $ 25,000 $2,000 1. Taxable income 50% disallowance for travel and entertainment expense 2. Excess of the deduction for depletion over the basis of non-oil and gas property s 5,000 4. Charitable contribution $ 4,000 What is the basis of Carol's stock at December 31, 20x1? O A. $55,000 O B. $64,000 O C. $74,000 n5000 2% Complete Exit & Resu Exam, Question Q 10

Explanation / Answer

Calculation of Basis of Carol's Stock at December 31, 20X1.

= $50000 + $25000 - $2000 - $5000 - $4000

= $64000

The Answer is "B"

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