You are given the following facts about a solely owned S corporation.What is the shareholder's ending stock basis?

Question

You are given the following facts about a solely owned S corporation.What is the shareholder's ending stock basis?
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Quizplus · Accepted Answer

- Net income for the year: $85,000
- Charitable contributions: $3,500
- Cost of goods sold: $20,000
- Depreciation: $6,000
- Distribution to shareholder: $10,000
- Beginning stock basis: $15,000

Calculation:
Starting with beginning stock basis ($15,000), add net income ($85,000), add depreciation ($6,000), and subtract distribution to shareholder ($10,000) to get a total of $96,000. Then, subtract charitable contributions ($3,500) and cost of goods sold ($20,000) to get a final stock basis of $99,100. Therefore, the correct answer is C ($99,100).

You Are Given the Following Facts About a Solely Owned