You are given the following facts about a solely owned S corporation.What is the shareholder's ending stock basis?

Question

Quizplus · Accepted Answer

The shareholder's ending stock basis is equal to the initial investment plus any additional contributions, minus any distributions received and loss allocations. In this case, the initial investment was $50,000, there were no additional contributions, distributions of $40,000 were received, and there were $10,000 of loss allocations. Therefore, the ending stock basis is $50,000 + $0 - $40,000 - $10,000 = $99,100.

You Are Given the Following Facts About a Solely Owned