You are given the following facts about a one-shareholder S corporation,and you are asked to prepare the shareholder's ending stock basis.

Question

Quizplus · Accepted Answer

To calculate the shareholder's ending stock basis, we need to add the following: 
1. The initial basis in the stock (in this case, $100,000).
2. Any additional contributions made by the shareholder (in this case, $50,000).
3. The shareholder's share of the S corporation's income or loss (in this case, $63,960).
4. Any distributions made by the S corporation to the shareholder (in this case, $-1,000).

Thus, the ending stock basis would be:
$100,000 + $50,000 + $63,960 - $1,000 = $213,960

Therefore, the best choice is C.

You Are Given the Following Facts About a One-Shareholder S