You are given the following facts about a solely owned S corporation. What is the shareholder's ending stock basis? $\begin{array}{lr}
\text { Increase in } A A A & \$ 31,000 \
\text { Increase in } O A A & 6,300 \
\text { Payroll tax penalty } & 2,140 \
\text { Beginning stock basis } & 39,800 \
\text { Stock purchases } & 22,000 \
\text { Tax-exempt insurance proceeds } & 4,800 \
\text { Insurance premiums paid (nondeductible) } & 2,700
\end{array}$ ?

Question

Quizplus · Accepted Answer

The ending stock basis is calculated by taking the beginning stock basis and adding increases such as AAA, OAA, stock purchases, and tax-exempt income, then subtracting nondeductible expenses. Calculation: $39,800 + $31,000 + $6,300 + $22,000 + $4,800 - $2,700 = $99,100.

You Are Given the Following Facts About a Solely Owned