What is the amount of Mrs. C's basis in the stock after the distribution?

FratBro23
Category:
Other
Price: $5 USD

Question description


Corporation M, a calendar year
corporation that began doing business on January 1, 20X1,

had accumulated earnings and profits of $30,000 as of January 1, 20X8. On July 2, 20X8, M

distributed $22,000 cash to Mrs.
C, M's sole shareholder. M had a $20,000 deficit in

earnings and profits for 20X8. Mrs. C had an adjusted basis of $14,000 in her stock before

the distribution. What is the amount of Mrs. C's basis in the stock after the distribution?

Tutor Answer

(Top Tutor) Daniel C.
(997)
School: University of Maryland
PREMIUM TUTOR
Studypool has helped 1,244,100 students
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1830 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors