You are given the following facts about a 40% owner of an S corporation, and you are asked to prepare her ending stock basis. $$\begin{array} { l r }
\text { Owner's beginning stock basis } & \$ 36,800 \
\text { Increase in AAA } & 32,000 \
\text { Increase in } O A A & 6,300 \
\text { Payroll tax penalty } & 2,140 \
\text { Tax-exempt interest income } & 4,800 \
\text { Insurance premiums paid (nondeductible) } & 2,700 \
\text { Owner's purchases of additional stock } & 22,000
\end{array}$$ ?

Question

You are given the following facts about a 40% owner of an S corporation, and you are asked to prepare her ending stock basis. $$\begin{array} { l r } 
\text { Owner's beginning stock basis } & \$ 36,800 \
\text { Increase in AAA } & 32,000 \
\text { Increase in } O A A & 6,300 \
\text { Payroll tax penalty } & 2,140 \
\text { Tax-exempt interest income } & 4,800 \
\text { Insurance premiums paid (nondeductible) } & 2,700 \
\text { Owner's purchases of additional stock } & 22,000
\end{array}$$ ?

Quizplus · Accepted Answer

The Answer of You are given the following facts about a 40% owner of an S corporation, and you are asked to prepare her ending stock basis. $$\begin{array} { l r } 
\text { Owner's beginning stock basis } & \$ 36,800 \
\text { Increase in AAA } & 32,000 \
\text { Increase in } O A A & 6,300 \
\text { Payroll tax penalty } & 2,140 \
\text { Tax-exempt interest income } & 4,800 \
\text { Insurance premiums paid (nondeductible) } & 2,700 \
\text { Owner's purchases of additional stock } & 22,000
\end{array}$$ ?

You Are Given the Following Facts About a 40% Owner