Both Thu and Tuan own one-half of the stock of Wren, Inc., a C corporation. Each shareholder holds a stock basis of $175,000. Wren has accumulated E & P of $300,000. Wren's taxable income for the current year is $100,000, and it distributes $75,000 to each shareholder. Thu's stock basis at the end of the year is:
A) $0.
B) $100,000.
C) $150,000.
D) $175,000.

Question

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The Answer of Both Thu and Tuan own one-half of the stock of Wren, Inc., a C corporation. Each shareholder holds a stock basis of $175,000. Wren has accumulated E & P of $300,000. Wren's taxable income for the current year is $100,000, and it distributes $75,000 to each shareholder. Thu's stock basis at the end of the year is:
A) $0.
B) $100,000.
C) $150,000.
D) $175,000.

Both Thu and Tuan Own One-Half of the Stock of Wren