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.
Tutor answered the question