Robert Elk paid $100,000 for all of the single class of stock of Elkom Corporation, an electing S corporation, when incorporated in January, 2007. Elkom's operating results and dividend distribution are as follows: $$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Tax Year } \
\text { Ending }
\end{array} & \begin{array} { c }
\text { Ordinary } \
\text { Income }
\end{array} & \text { Distribution } \
\hline 2007 & ( \$ 40,000 ) & \
2008 & 60,000 & \$ 20,000 ( 9 / 30 ) \
2009 & 30,000 & \
\hline
\end{array}$$ What is Elk's basis for his Elkom stock on December 31 of 2007?

Question

Robert Elk paid $100,000 for all of the single class of stock of Elkom Corporation, an electing S corporation, when incorporated in January, 2007. Elkom's operating results and dividend distribution are as follows: $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Tax Year } \
\text { Ending }
\end{array} & \begin{array} { c } 
\text { Ordinary } \
\text { Income }
\end{array} & \text { Distribution } \
\hline 2007 & ( \$ 40,000 ) & \
2008 & 60,000 & \$ 20,000 ( 9 / 30 ) \
2009 & 30,000 & \
\hline
\end{array}$$ What is Elk's basis for his Elkom stock on December 31 of 2007?

Quizplus · Accepted Answer

The Answer of Robert Elk paid $100,000 for all of the single class of stock of Elkom Corporation, an electing S corporation, when incorporated in January, 2007. Elkom's operating results and dividend distribution are as follows: $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Tax Year } \
\text { Ending }
\end{array} & \begin{array} { c } 
\text { Ordinary } \
\text { Income }
\end{array} & \text { Distribution } \
\hline 2007 & ( \$ 40,000 ) & \
2008 & 60,000 & \$ 20,000 ( 9 / 30 ) \
2009 & 30,000 & \
\hline
\end{array}$$ What is Elk's basis for his Elkom stock on December 31 of 2007?

Robert Elk Paid $100,000 for All of the Single Class