You are given the following facts about a one-shareholder S corporation. Prepare the shareholder's ending stock basis.

Question

Quizplus · Accepted Answer

The ending stock basis is calculated as follows:
Beginning basis: $100,000
+ Share of S corporation ordinary income: $70,000
+ Share of S corporation separately stated items: $18,000
= Ending basis: $188,000
However, there is also a $26,960 loss that cannot be fully taken due to basis limitation, which reduces the ending basis to $161,040. Adding the $53,920 suspended loss from prior years brings the shareholder's ending stock basis to $214,960. Therefore, the answer is C, $214,960.

You Are Given the Following Facts About a One-Shareholder S