What is davids ending tax basis in the corporation

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Reference no: EM133927169

Problem

David B. owns all the stock of Starman, Inc., which has always been an S corporation. At the beginning of the year, David's tax basis in the stock was 10,000. During the year, the corporation generated a capital loss of 18,000 and ordinary income of 25,000. Get the instant assignment help. It also distributed, on the last day of the year, cash of 15,000 to David. What is David's ending tax basis in the corporation?

Reference no: EM133927169

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What is davids ending tax basis in the corporation : David B. owns all the stock of Starman, Inc., which has always been an S corporation. What is David's ending tax basis in the corporation?

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