On the 41st day of 1993 kane sold 25 of the manning

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Unformatted text preview: above rules. CPA-01961 Type1 M/C A-D 85. CPA-01961 ARE May 95 #22 Corr Ans: D PM#7 R 3-02 Page 52 A shareholder's basis in the stock of an S corporation is increased by the shareholder's pro rata share of income from: Tax-exempt interest Taxable interest 41 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. Maxixishere Pdf Collection Becker CPA Review, PassMaster Questions Lecture: Regulation 3 a. b. c. d. No No Yes Yes No Yes No Yes CPA-01961 Explanation Choice "d" is correct. Rule: Both tax-exempt and taxable interest income increase a shareholder's basis in S corporation stock. Choices "a", "b", and "c" are incorrect, per the above rule. CPA-01964 Type1 M/C A-D 86. CPA-01964 ARE Nov 94 #41 Corr Ans: C PM#8 R 3-02 Page 53 Zinco Corp. was a calendar year S corporation. Zinco's S status terminated on April 1, 1993, when Case Corp. became a shareholder. During 1993 (365-day calendar year), Zinco had nonseparately computed income of $310,250. If no election was made by Zinco, what amount of the income, if any, was allocated to the S short year for 1993? a. b. c. d. $233,750 $155,125 $76,500 $...
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This note was uploaded on 06/14/2013 for the course ACCOUNTING Regulation taught by Professor Becker during the Fall '10 term at Keller Graduate School of Management.

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