Samantha owned 1,000 shares in Evita, Inc., an S corporation, that uses the calendar year. On October 11, 2011, Samantha sells all of her Evita stock. Her basis at the beginning of 2011 was $60,000. Her share of the corporate income for 2011 was $22,000, and she receives a distribution of $37,000 between January 1 and October 11, 2011. Her stock basis at the time of the sale is:

Question

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Samantha's stock basis is calculated as follows: Start with the beginning basis of $60,000, add her share of corporate income $22,000, and subtract the distribution she received $37,000. This results in a stock basis of $45,000.

Samantha Owned 1,000 Shares in Evita, Inc