Sole shareholder of a calendar

Reference no: EM13120825

During 2010, Shirley Nutt, the sole shareholder of a calendar year S corporation, received a distribution of $16,000. On December 31, 2009, her stock basis was $4,000. The corporation earned $11,000 ordinary income during the year. It has no accumulated E & P. Which statement is correct?

a. Nutt recognizes a $1,000 LTCG.

b. Nutt's stock basis will be $2,000.

c. Nutt's ordinary income is $15,000.

d. Nutt's return of capital is $11,000.

e. None of the above.

Reference no: EM13120825

Questions Cloud

Abstract algebra-equivalence relations : A relation R is defined on the set Z of all integers. In each case, prove that R is an equivalence relation. Find the distinct equivalence classes of R and list at least four members of each.

Find standard error for the sample mean salary : Standard deviation of $1.2 million in 2009. Suppose a sample of 100 major league players was taken. What was the standard error for the sample mean salary?

Determine the predetermined overhead rate for june : The manufacturing overhead budget of Lewison Corporation is based on budgeted direct labor-hours. The June direct labor budget indicates that 5,800 direct labor-hours will be required in that month.

How large sample is necessary if standard deviation is known : Community college spends each year. If she wishes to be 90% confident, how large a sample is necessary if the standard deviation is known to be $80?

Sole shareholder of a calendar : During 2010, Shirley Nutt, the sole shareholder of a calendar year S corporation, received a distribution of $16,000. On December 31, 2009, her stock basis was $4,000.

Logarithms and simultaneous equations : Given that x and y are both positive, solve the simultaneous equations.

Determine probability that selected smoker has lung disease : Of those not having lung disease, 25.3% are smokers. Determine the probability that a randomly selected smoker has lung disease.

What is the total amount of taxes withheld : Phil Phoenix is paid monthly. For the month of January of the current year, he earned a total of $8,288. The FICA tax rate for social security is 6.2% and the FICA tax rate for Medicare is 1.45%.

Create an analogy or metaphor : Determine which step in estimating a cost function using quality analysis is the most likely to present the greatest challenge and how you would address that challenge.

User Account

All Pages