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

Question

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

Quizplus · Accepted Answer

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

You Are Given the Following Facts About a 40% Owner