Shareholder A is the sole shareholder in S Corporation, an S Corporation. On Jan

Question

Shareholder A is the sole shareholder in S Corporation, an S Corporation. On January 1 2016. A's basis is $70,000. During the same year, the incorporation has non-separately stated income of $30,000. A 1231 gain in the first half of the year of $3,000 and a charitable contribution in the second half of the year of $2,000. On July 1,2016, A sales his stock to B for $150,000.

a A's gain is $80,000

b A's gain is $45,000

c A's gain is $62,000

d A's gain is $64,500

e None of the above

Which is the right answer and explain how you get to the result?

Explanation / Answer

a) A's gain is $ 80000

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