This choice excludes the 6000 of municipal interest

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Unformatted text preview: wever, the computer desk and the office furniture are MACRS 7-year property, which includes office furniture and fixtures, equipment and property with no ADR midpoint classified elsewhere, and railroad track. Small Business Corporations (S Corporations) CPA-01771 Type1 M/C A-D Corr Ans: C PM#1 R 3-02 81. CPA-01771 PII Nov 93 #44 Page 9 If an S corporation has no accumulated earnings and profits, the amount distributed to a shareholder: a. b. c. d. Must be returned to the S corporation. Increases the shareholder's basis for the stock. Decreases the shareholder's basis for the stock. Has no effect on the shareholder's basis for the stock. CPA-01771 Explanation Choice "c" is correct. If an S corporation has no accumulated earnings and profits, the amount distributed to a shareholder decreases the shareholder's basis for the stock. The distribution is nontaxable to the extent of the shareholder's basis. 39 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. Maxixishere Pdf Collection Becker CPA Rev...
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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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