Samantha owned 1,000 shares in Evita,Inc.,an S corporation,that uses the calendar year.On October 11,2013,Samantha sells all of her Evita stock.Her basis at the beginning of 2013 was $60,000.Her share of the corporate income for 2013 was $22,000,and she receives a distribution of $35,000 between January 1 and October 11,2013.Her stock basis at the time of the sale is:

Question

Quizplus · Accepted Answer

To calculate Samantha's stock basis at the time of the sale, we need to take into account:

1. Her initial basis: $60,000
2. Her share of corporate income: $22,000
3. Her distributions: $35,000

Adding these up, we get:

$60,000 (initial basis) + $22,000 (share of corporate income) - $35,000 (distributions) = $47,000

Therefore, Samantha's stock basis at the time of the sale is $47,000. Option D is the correct answer.

Samantha Owned 1,000 Shares in Evita,Inc