This question has been answered by Expert on Mar 3, 2012. View Solution
posted a question
Savol INC, is an accrual basis S Corporation with three equal shareholders. The three cash basis shareholders have the following stock basis at the beginning of the year : Andre $12000, Crum $22000, Barbara $28000. Savoy reports the following income and expense items:

Operating loss - (30000)
short-term capital gain - 37500
long-term capital loss- (6000)
Nondeductible fess and penalties ( 3000)

The electing corporation distributes $5000 of cash to each of the shareholders during the tax year. Calculate the shareholders' stock bases at the end of the year.
Expert answered the question
Welcome  View Full Answer