Barb and Chuck each own one-half of the stock of Wren, Inc., a C corporation. Each shareholder has a stock basis of $175,000. Wren has accumulated E & P of $300,000. Wren's taxable income for the current year is $100,000, and it distributes $75,000 to each shareholder. Barb's stock basis at the end of the year is:
A)$0.
B)$100,000.
C)$150,000.
D)$175,000.
E)None of the above.

Question

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The Answer of Barb and Chuck each own one-half of the stock of Wren, Inc., a C corporation. Each shareholder has a stock basis of $175,000. Wren has accumulated E & P of $300,000. Wren's taxable income for the current year is $100,000, and it distributes $75,000 to each shareholder. Barb's stock basis at the end of the year is:
A)$0.
B)$100,000.
C)$150,000.
D)$175,000.
E)None of the above.

Barb and Chuck Each Own One-Half of the Stock of Wren