Barb and Chuck each own one-half of the stock of Wren,Inc. ,a C corporation.Each shareholder has a stock basis of $100,000.Wren has accumulated E & P of $500,000.Wren's taxable income for the current year is $80,000,and it distributes $50,000 to each shareholder.Barb's stock basis at the end of the year is:
A)$50,000.
B)$90,000.
C)$100,000.
D)$140,000.
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 $100,000.Wren has accumulated E & P of $500,000.Wren's taxable income for the current year is $80,000,and it distributes $50,000 to each shareholder.Barb's stock basis at the end of the year is:
A)$50,000.
B)$90,000.
C)$100,000.
D)$140,000.
E)None of the above.

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