Solved

During 2013,Miles Nutt,the Sole Shareholder of a Calendar Year S

Question 97

Multiple Choice

During 2013,Miles Nutt,the sole shareholder of a calendar year S corporation,received a distribution of $16,000.On December 31,2012,his stock basis was $4,000.The corporation earned $11,000 ordinary income during the year.It has no accumulated E & P.Which statement is correct?


A) Nutt recognizes a $1,000 LTCG.
B) Nutt's stock basis will be $2,000.
C) Nutt's ordinary income is $15,000.
D) Nutt's return of capital is $11,000.
E) None of the above.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents