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

Question

You are given the following facts about a solely owned S corporation.What is the shareholder's ending stock basis? Increase in AAA $31,000 Increase in OAA 6,300 Payroll tax penalty 2,140 Beginning stock basis 39,800 Stock purchases 22,000 Tax-exempt insurance proceeds 4,800 Insurance premiums paid (nondeductible) 2,700 ​

Quizplus · Accepted Answer

The ending stock basis is calculated as the beginning stock basis plus stock purchases plus tax-exempt income, minus nondeductible expenses. Thus, $39,800 + $22,000 + $4,800 - $2,700 = $99,900.

You Are Given the Following Facts About a Solely Owned