Samantha owned 1,000 shares in Evita, Inc., an S corporation, that uses the calendar year. On October 11, 2014, Samantha sells all of her Evita stock. Her basis at the beginning of 2014 was $60,000. Her share of the corporate income for 2014 was $22,000, and she receives a distribution of $35,000 between January 1 and October 11, 2014. Her stock basis at the time of the sale is:

Question

Quizplus · Accepted Answer

To calculate Samantha's basis at the time of sale, we start with her beginning basis ($60,000) and add her share of corporate income ($22,000) and subtract her distributions ($35,000).

$60,000 + $22,000 - $35,000 = $47,000

Therefore, the correct answer is choice D.

Samantha Owned 1,000 Shares in Evita, Inc