Bryan Corporation,an S corporation since its organization,is owned entirely by Mr.Bryan.The corporation uses a calendar year as its taxable year.Mr.Bryan paid $120,000 for his Bryan stock when the corporation was formed on January 1 of this year.For this year,Bryan Corporation reported the following results: Distributions of $40,000 were made during the year.What is the basis of Mr.Bryan's stock on December 31?

Question

Bryan Corporation,an S corporation since its organization,is owned entirely by Mr.Bryan.The corporation uses a calendar year as its taxable year.Mr.Bryan paid $120,000 for his Bryan stock when the corporation was formed on January 1 of this year.For this year,Bryan Corporation reported the following results:  Distributions of $40,000 were made during the year.What is the basis of Mr.Bryan's stock on December 31?

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The Answer of Bryan Corporation,an S corporation since its organization,is owned entirely by Mr.Bryan.The corporation uses a calendar year as its taxable year.Mr.Bryan paid $120,000 for his Bryan stock when the corporation was formed on January 1 of this year.For this year,Bryan Corporation reported the following results:  Distributions of $40,000 were made during the year.What is the basis of Mr.Bryan's stock on December 31?

Bryan Corporation,an S Corporation Since Its Organization,is Owned Entirely by Mr.Bryan.The